Clinton
If Clinton WinsIf Clinton wins expect 1-2 week rally for major indices. I expect a retracement back to the 2130-2140 zone where I will enter as short, because after the rally I expect more downwards movement to at least Brexit lows around 2010-2000. Since the lower BB is not widening, I expect a similar situation as 2014-10-13.
Nasdaq: Trump brings the index downAmerican are still ongoing presidential, but judging from those that are temporary results Trump appears to be in the lead.
The US stock markets price the news with breakout of important levels of short-term support.
Analyzing the NASDAQ, we can witness the breaking of the support area in 4680-4700, an important area for the mid-term trading and the maximum year 2015.
The price also goes to cut the moving average 100 periods, providing a good indication of bearish strength.
If the price action were to continue as we have seen so far, the chances of seeing new descents should be to consolidate, and the 4,700 area would represent an excellent opportunity for the input of new sellers.
Sell EURUSD Ahead of ElectionI am switching my USDOLLAR bias from bearish to bullish for now. As we know November is a seasonably bullish USDOLLAR month especially against the Euro. The USDOLLAR Index has support right now and we're seeing gold sell off from the major $1300 area, which agrees with this. Clinton is currently leading the polls and odds are showing a pretty surefire win, which makes sense as to why we're seeing the dollar run up as well as equities. From a technical perspective the EURUSD retested the 1.115 area, which was previous support and then just shy of the retest of the trendline. Afterwards we gapped down and now we're forming a pin bar. I am looking to sell targeting 1.085 then we will look for targets lower from there. I know it may seem like a risky trade with the elections, but I think the odds are in your favor here.
AUD/USD: key area at 0.7700 before US presidentialThe AUD/USD shows clearly what are the key areas to be monitored. In previous octaves we saw resistance at 0.7700 always reject prices force. Despite all ,the market continues to be purchased every time prices from attempting a new descent, going to bounce on the long-term dynamic support.
It is important to watch what will happen with the US elections, as a strong depreciation of the US dollar could lead the Australian dollar to make the breakout of 0.7700. The exponential moving average at 100 periods provides additional detail the importance of this price zone.
Should the price go below 0,75.500 / 0,75,00, we would have high possibility of strong bearish movements.
EURUSD Daily correction scenarios (details in comments)So there's a reasonable expectation for the EURUSD to correct after the huge rise seen these days. There are several old zones (suports and resistances) that could work, yet the H4 could prove evidence otherwise. Fundamental factors do in fact point to EURUSD not getting back to the pre-draghi levels in my opinion, but it rather depends on the NFP data tomorrow and the elections outcome among other factors. If it rises further, there are also old resistances that could act before getting to the previous levels. Let's see how it untangles!
Nearing a Top in the DollarThe Dollar is nearing a medium-term top as a wave B of (4). While we may have already reached the top, I would still expect one last move up with the DXY peaking just under the 100 mark around 99.7. This would fit well with the length of wave c being equal to wave a.
Once a top is confirmed, the price movement should resume the downtrend to complete the corrective wave (4) somewhere under the previous low of 92 and above the 50% retracement of the full wave (3) extension of 89.7 around mid-to-end 2017. An alternative count could see wave (4) develop as a triangle which would extend the correction further time-wise.
Interestingly, the count sees the dollar peak around the time of the US presidential elections. On Friday, following the announcement that the FBI would reopen the investigation into Hillary Clinton's emails, the dollar slipped against major currencies due to the political uncertainty tied to a Trump lead. I wonder if the pattern that is taking shape is an indication of things to come. Stay tuned...
Hillary Clinton Presidential Race bet on Game TheoryAccording to game theory the following is the only option available to Hillary Clinton should she still wish to pursue White House bid. Currently as it stands Trump is projected to win. Clinton has all but one option:
Step aside as VEEP and let Tim Kaine run as the president on a united front message. You welcome Hilary, that is your only option short of Donald Trump falling into a volcano.
Market will go sideways, Trump will be great for stocks, bad for bonds.
Looking for more game theory? PM me.
-- never stop learning --
Short Term Smith and Wesson Presidential Debate TradeThe First Presidential Debate is looking more and more like it will decide this upcoming election, and If Hillary wins the debate, gun sales will surge due to peoples' fear that she will continue the Democratic gun control rhetoric and possibly policies of her predecessor.
How to Play The SPY if Trump or Hillary Wins the ElectionThe plan to play the SPY is to buy this Wave 4 dip in the 173-170 range. I do not want to be in this trade if we start breaking the 165 level so I have set my stop below that.
I think nearing the presidential elections takes us lower and markets get real choppy during this time so my entry will be planned and timed very well during this time.
Once a president is elected it is going to be a good day in America and the people staying out of the market because of its pre-election volatility and bearishness with begin to put money back into the market hitting our target.