Trading Plan – Monday 2nd November 2020: Presidential election scenarios unclear
Despite extensive reading and research, I can find very little agreement between market commentators in terms of the various election outcomes and their impact on the markets. Maybe the only real agreement is that a Biden win will be good for infrastructure companies because Biden has said he will spend bigly on, er…, infrastructure. Dazzling insight there.
In the event of a clear winner, we will hear the result as the final poles close at 11pm EST (4am Wednesday, GMT). If the result is close, it could take days. Or weeks.
In terms of trading, if there is clear sentiment by today’s close and a compelling trading opportunity, I may take it. I will make sure I am out of any trade by the Tuesday close.
There is a significant risk event on Thursday – the Bank of England’s Super Thursday. If the UK parliamentary vote on Wednesday supports the lockdown scheduled to begin on Thursday, there is a significant chance the BoE will introduce some more stimulus which may move the markets.
The Performance Report for October and year-to-date is available on this website and in the VIP Club members area.
I’ll be back on Wednesday and we can pick our way through the US election wreckage.
Have a good week.
You can watch the video in the VIP Club members area HERE