Bulls Squeeze Their Way Into The Election
Last week, no one wanted to be involved in the stock market.
We traded lower every day of the week, broke support, and sank into the abyss to close out everything on Friday.
Today though, is a brand new week, filled with energy and optimism.
We’re seeing a sharp rally of 2% or so across all of the major averages, and importantly we’re recovering that support area at $SPY 212 that we broke down from last Monday.
The gap this morning, was hardly challenged, as bulls have dominated the session and pushed higher throughout the day.
All in all this is very constructive reversal-like price action that can lead to short and intermediate term bottoms in the market.
The difficulty with the reversal this time around however is that we still have a risk event on deck tomorrow, namely the US Presidential election.
That throws a wrench in our usual game planning as it brings a bit too much uncertainty to really commit to any new trades that we otherwise would have tried to capitalize on for 3 to 4 day swings.
So for now, we remain largely in cash and focus on building our watch-lists.
Luckily we weren’t completely flat footed today as we did come into the week with some longer term holds that are benefiting nicely from today’s rally.
One being $JPM which is back to making new YTD highs and a stones throw away from all time highs.
Good luck out there.
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