As we get closer to election the market is not behaving as it normally does nor as it should. It's kind of like pouring a glass of Coca-Cola onto the live circuit boards down the back of your TV. Anything can happen and you don't want to be too close!
Markets which are normally paired, coupled or inverse to each other now seem to be decoupled and having a mind of their own. (sounds like my ex)
Nonetheless, now that I have you concerned, we had a pretty good week despite everything. Out of 17 trades closed, 14 were positive for an 82% winning trade ratio and we again gained about 10% for the week on our account balance.
We do have 8 open positions which are negative at the moment but the market appears to be creeping in our direction. This game is the ultimate test of patience.
My goal this week is to at least get those positions closed at break even or slightly better and get out of the market before election.
This is not a normal election and despite an expected Trump landslide which would be good for the Indices and the USD in the forex pairs, what concerns me is the fallout after the election.
There is significant reason to believe that when Trump is re-elected we could be facing much more than just 'chaos' from organized thugs and rioters in the streets. I won't go further than that here, But if the worst happens (war) we could see total collapse of the markets.
In that event we'll be watching closely to world events and seeking to do what we can to catch the markets with appropriate shorts, but for now it's going to be dicey with erratic market moves for awhile and I'll feel much better if we can close our open positions to stand aside for a time and see what develops before jumping back in again.
This week should be somewhat calm. Enjoy it. Next week may not be!
All the best,
Mark
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