Election Special on Stocks

The S&P is already starting to break out, exactly in line with our prediction on the election special last night. The Kovach OBV is registering some strong bull momentum. But avoid FOMO here, and be very mindful of the downside risk. As mentioned, today is election day in the US, but neither side seems poised to accept the results of the election. If this is true, we will see volatility in the markets as investors wait from the sidelines for resolution. Additionally, there is the threat of civil unrest (particularly on the Democratic side). Depending on how bad it is, we could see another coronavirus level retracement. Once a clear winner is decided, however, we anticipate a V-shaped recovery either way. The point is be very careful of holding long term positions. Quick scalping may be very profitable, especially off the levels drawn. Just avoid holding positions for too long and be mindful of the volatility. A good retracement could take us to 3200, 3100, or worst case back to the 2000's. This should be considered the buying opportunity of a lifetime in the long term, if so.