US election day, what we can do today?
As we wait for the outcome of the vote and to see who will be the next President of the United States, one thing is for certain: today will be a very volatility day, every change, every news about the election will be affect all the markets in important movements, so maybe the better strategies is wait and see. According from the reactions of the markets until now, a Trump victory would be the market-bearish course. A Clinton victory would probably see major support hold in US markets.
In fact, on Monday, the stocks had their best day since March, when the FBI’s latest investigation into Clinton emails turned up nothing new, improving her odds in the eyes of global markets. Stocks around the world rallied, and the Dow surged 371 points to 18,259. The S&P 500 was up 46 at 2,131. Traders said the market is biased toward moving higher again Tuesday, but probably not as much.
On Friday, the S&P 500 came down to its 200 day moving average of 2083, stopped, and closed at 2085. Judging from how many times the S&P 500 bounced from this line before the August 2015 crash, a decline where the Dow lost over 2,000 points in four days, it was obvious that the powers might seek to bounce stocks from this line again. Because yesterday all the market around the globe win in average 2 percent in just one day, the speed of November 7th stock rally, it is clear that a lot of traders were in place hedging for a fat tail event that has been talked about repeatedly for weeks now. If Clinton wins, most commentary I have seen thinks stocks will stay the same or move a few percentage points higher. It Trump wins, it would be like the Brexit vote only creating an even sharper drop, impacting everything from stocks to currencies to gold.
By Wednesday, we will know who won the election. However, maybe we already knew after yesterday’s power rally. Also, the latest developments in the U.S. election campaign have also seen a move away from safe haven assets. The gold prices started to inch up 0.26 percent in Asian trade to $1,284.80 an ounce, but still below highs of $1,304 from last week.
The dollar index, which tracks the greenback against a basket of currencies, traded at 97.708, extending two straight days of gains. And the U.S. crude futures was unchanged, trading at $44.89 during Asian trade, after settling at $44.89 a barrel on Monday in the U.S. Brent futures traded at $46.28, up 0.28 percent from its Monday’s settlement price of $46.15.
Another new problem for Twitter, current troubles lie in its struggle to get people to sign up and make the platform work for them. In the last months in every moment than the stock reach a strong resistance we saw a take profit situation. So we are expecting that reaction still on.
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Facebook is testing a feature that would let page administrators create job postings and receive applications from candidates, a move that could pressure LinkedIn’s recruiting business. These good announcements could help to facebook to recover his losses after the earning presentation.
Graphics by: www.etoro.com
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