Market Scaring Out the Weak Holders Ahead of Halloween
I have the election 2020 and its market impact webinar tonight so I will keep this brief. I think you can still sign up, but we may be at capacity by now.
Stocks digested the recent decline on Tuesday and a number of positives started popping up, including the narrowest intra-day range of any day of the past 7 days. In technical terms that is the ole NR7. Trading activity continued on the quiet side and the stock market is at a 10 day low. However, Monday’s close breached the line in the sand I wrote about and that little trade was exited with a small loss.
Stocks look to be in the final stages of the decline as the market is very much following the incumbent loss analog. In a note to clients on Tuesday I wrote about Dow 26,000 and 30,000 being the best and worst case scenario. What looks to be an ugly opening for the bulls only reinforces that and I will be adding risk to my own accounts this week. Yes, I do know there is a little election next week.
I started publishing my Biden and Trump portfolios on a daily basis the other day. Here are the 1, 2, 3 and 4 week returns.
1 weeks -2.61%
2 weeks -3.59%
3 weeks +0.59%
4 weeks +3.22%
1 week -2.34%
2 weeks -2.36%
3 weeks +0.33%
4 weeks +2.66%