To all Insiders,
At the beginning of September, the S&P 500 Index was trading well above 3500 and eyeing to break above 3600. Fast forward a month and here we are eyeing to get back above 3500. What happened in the past 30 days? Politics and a President whos thumbs like to talk. Between Nancy Pelosi trying to get more βaidβ in the stimulus bill and Trump canceling talks until post the election, we had a whipsaw of price action in the markets. The S&P saw a low last month testing 3200 as support.
So now where are we headed? Put very simply its a day-to-day seesaw of Trumpβs tweets and the Democrats trying to overthrow Trump. I am not political and do not take either side here but it is very clear that the markets want Trump. Prior to his release from the hospital and even on the night of the public getting word that he had COVID, we saw violent quick moves lower and upon mentioning that he was better, being released and working on βfurther talksβ reverse went the market and itβs again a great time to buy.
My gut is telling me that we are in all likelihood headed higher in the very short term that is until the Democrats decide to create another speed bump to Trump. November 3rd will an interesting time, I do believe we will see a Trump victory which will get great for markets but this will likely be followed by greater attempts to create havoc on Trump but interesting time in the markets nonetheless.
Regardless of who wins, Biden or Trump one thing is certain and that is the markets are poised for violent swings. Now, this is just my opinion based on what the markets have done Biden beats Trump -> markets tank, Trump beats Biden -> markets like it and we head higher. In the interim, we seem to be overbought and approaching resistance so a pullback of some kind could very well be in the cards.
Below you will see my live trading commentary in the Astute Strategist Discord group CLICK HERE on the market movements and where I believed it was going.