Friday the markets were up nicely but then something happened that jolted the markets into reality. News came out that the FBI was reopening the Clinton investigation as a result of emails found on Anthony Weiner’s computer. 650,000 of them!
The market immediately tanked on this news. I have been saying that if we saw a narrowing of the odds the markets would react. And react they did. But then they rebounded a bit and this morning are up .15%
I do not think the turmoil is over. We have now a war going on between one party and the FBI. I do not see how that can turn out well for the stock market. My guess is this revelation on Friday has the potential to shock the nation. And Shock the stock market. The risk now is for a black swan event that could occur between now and election day.
The only risk right now is a sharp move down. So I suggest you should act accordingly. There will be plenty of time to invest and trade after the elections are over and things settle down. Do not get into the unenviable position of being heavy in the markets and be staring at a 10 or 20 percent down day.
Now nothing may happen and the market might even go up from here. But event risk right now is extreme!!! You will not have time to leisurely trade out of the market if alarming new hits.
My goal is to educate and keep people that follow me out of trouble. I have no intention of expressing any opinions as to either candidate or either party. That is not the intention of this site. I am a true independent that is issue driven.
My only purpose is to discuss the markets and in addition, discuss how events both at home and abroad might affect the markets.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. It’s my private twitter feed for the stock market and its free. Sports Handicapping is the subscription-based part of this site. But considering the cost of joining it’s almost free:)
Good Luck Today
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