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