LIVE AT 4 PM ET — 1 TICKER WALL STREET MIGHT BE TRIGGERED TO BUY!
We’re in the final stretch before the elections, and if there’s one thing that seems certain, it’s that uncertainty is here to stay — at least until enough ballots are counted to know a winner.
Aside from a move higher the first half of October, the market has been stuck in sideways chop ever since the FOMC’s last rate cut, which barely nudged things higher. We’ve seen some intraday volatility but nothing that has driven us beyond this range.
Yet, with polls showing shifting advantages for each candidate, the stakes for a potential breakout are high — and this gridlock won’t last forever.
Election-related volatility is a unique beast.
When a big event like this nears, it’s a lot like a company heading into an earnings announcement. We know movement is coming, but direction?
That’s the tricky part.
Right now, market sentiment suggests two possible reactions post-election: If the markets gain a sense of certainty, especially if the winner is expected, that relief could push things higher. If there’s an unexpected twist, like a win from a less-favored candidate, we may see a strong downside reaction as markets digest the surprise.
The sectors expected to feel this volatility most are those closely tied to each candidate’s policies.
Think about companies in renewable energy, health care, and even defense contractors like Lockheed Martin (LMT). If a candidate advocating for higher defense budgets wins, LMT might be in a better position to rally.
But should the election swing in favor of the candidate pushing for renewable initiatives, we could see clean energy stocks get a boost, while defense takes a breather. And any sector that’s seen as a “loser” in policy terms might experience a sell-off, though the scale will depend on how heavily priced in these expectations are by election day.
Historically, markets favor certainty — which is one reason I think any form of stability will eventually push us higher. After all, we’ve been in an uptrend despite recent chop, and we’re still hovering around all-time highs.
When we factor in the market’s general upward bias, it’s reasonable to assume that we’ll lean positive once we get past this waiting game. Add in the end-of-year seasonality that typically brings a rally, and we could be set up for a strong finish to the year.
But until that certainty arrives, expect volatility to stay elevated. Set featured image
The VIX has been hovering around 19 for weeks — 20 is considered average volatility — and I don’t see it dropping until after we have an election outcome.
We’re likely to see a jump either way — up or down — and for now, the only certainty is that markets won’t be calm. Whether you’re looking to capitalize on volatility directly or positioning for specific sectors post-election, this is the time to prepare for the big moves.
The countdown to Election Day is on — and the clock is ticking for markets to decide on their next direction.
Kane Shieh
Kane Shieh Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Will This Ticker Trigger Wall Street?
I’m going LIVE at 4 p.m. ET today, Oct. 30, to share a ticker I just discovered that Wall Street might be triggered to take action on and buy like crazy — even if it moves by just 1%.
And I plan to trade it using the exact same way that’s proven to payout every single week with 80% accuracy
That’s why I want to show you exactly how I did it, plus how you can, too.
Now, I’m not a magician, so I can’t guarantee wins or prevent losses…
But if everything goes just the way I see it… we could be looking at what could be our next big winner.
If you don’t want to miss out on how I plan to trade it, you can join me here now to know which ticker it is…
Disclaimer: The profits and performance are not typical, we make no future earnings claims, and you may lose money. From 1/1/24-10/24/24 we have seen a 79.5% win rate on LIVE trades with a 53% average return of winners and losers and a 79% average winner over a 5 day average hold time.
