Markets: a week of Passion

Posted: November 2, 2016 in Uncategorized

Well, now we are close to the election and the market is in complete panic.

The last US elections ere pretty close – so it was always improbable that a meg lead (if true) advertised by the media was going to last.

But now if Trump behaves for week (even he could!), Clinton could be in trouble.

The market yesterday had already a breach of SP 500 2,100 (intraday) and the ASX 200 is closing in 5,200 (we saw this level first time in March 2013!!…5 year ago!!).

Now a general weakness is in the card.

If the really bad scenarios happens the road is open for  SP500 – 2,000  and then 1,920.

If the good scenario happens we will close back again to 2,200.

But remind yourself that not only the President has to be watched, but also the Congress for potential gridlock scenario.

But this could play really fast and furious as a buy opportunity. Plus it will stem the inflation issues and the FED in December – which are much bigger problems to tackle.

So not everything is bad, if you know what you are doing.

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