Pre-Election 2016 Market Thoughts

This is the first election I have followed and am voting in, and it has definitely been one for the record books. I am glad this will come to an end this week so the market will finally stop treading water. Here are some important charts I am seeing as we head into the close:

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There is a theme of hiding out in large and mega caps, and weakness in small and micro caps. Couple that with bad breadth, and things can get hairy quick on a different than expected result. We are finally seeing some sell off in the big FB, AMZN, GOOGL’s too.

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Relative strength wise, we are seeing some positive sectors leading and the potential for a less bearish future than everyone will have you believe.

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I have a feeling this is just another overhyped one day event that puts everyone in a frenzy. Remeber Brexit? I’m sure we could see a jump to bonds, but not anything major. In my opinion, they are now in a downtrend and continuing to get crushed as the yield chase bubble unwinds.

With technology, transports, and financials breaking out/leading on a relative strength basis, I’d can’t have a bearish bias to the market.

Political opinion aside, the market is telling me that Trump will win. Does that kick off a new bull or bear market? I don’t know. But I am a buyer at the June Brexit lows regardless. Lets see if seasonality kicks off on Wednesday.

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Have a good weekend.

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