This was sent out to those subscribed to my free market timing newsletter shortly after the close today. If you’d like to be included on the list and receive future market turning signals you can do so by signing up here.
It always seems like my timing signal triggers on the eve of an important date, whether it’s a Fed Announcement, Jobs report, and now I can add US Elections. As if we needed to take on more volatility but a signal is a signal and here’s how I’m going to play it.
I took a half position in QQQ’s after-hours tonight and hold on tight. I didn’t expect a trade to be triggered today as I felt the markets needed to cover more upside before that happened, but maybe this is all the upside we get. It’s hard to believe that we’re going to sell off once the uncertainty is over, but looking at how stocks have reacted to earnings and the overall charts on the indexes they aren’t exactly bullish.
If we see more upside tomorrow over the next few days I believe it’ll be temporary and will add more shorts if my long term timing signal remains bearish and I’ll send a quick email out when/if that happens and I add so you can to if you want. Or a more conservative approach would be to do nothing now, wait for more rally, and short then for a better entry…but that may not happen and that’s why I want to have nominal exposure now in the event today was all the buying we get.
Today looked like a classic counter trend / relief rally that the elections are upon us and we’re nearly done with all this political silliness. There’s no doubt this is a risky trade, so if you are risk adverse you may want to sit this one out.