The U.S. Presidential Election is three weeks away and investors are finally beginning to feel the jitters. Stocks sold off for the second day in a row, driving currencies lower in the process. This will be the most dramatic presidential race in recent history and, while most polls show Joe Biden in the lead, investors have grown leery of trusting the polls after being burned in 2016.
Over the past few weeks, equities and currencies rallied on the hope that some type of stimulus would be approved before or shortly after the election. However, at this stage, it is looking increasingly unlikely. House Speaker Nancy Pelosi has repeatedly described President Donald Trump’s stimulus offer as grossly inadequate. The sell-off in stocks today was sparked by Treasury Secretary Steve Mnuchin’s pessimism. After another conference call with Pelosi, he admitted they continue to be far apart on certain issues and getting something done before the election will be difficult. This suggests that he’ll push harder to get Congress to allow the government to tap unused Paycheck Protection funds. Meanwhile, the longer that fresh aid is withheld from Americans, the more difficult it may be for the recovery to continue.
Second Wave of coronavirus can be another issue. Italy reported its highest ever daily virus cases, while Germany is closing in on its record high. France declared a national state of emergency that will mean curfews for major French cities. The Eurozone economy will be hit hard by the second wave which can be negative for the rest of the world equities as well.
Taking into consideration above mentioned facts and by using technical analysis as a Trading Academy team we beleive the current sell off in equities can last for a while by offering us short term sell opportunities.
Selling S&P500 with a TP at 3300$ can be a possible option.
Over the past few weeks, equities and currencies rallied on the hope that some type of stimulus would be approved before or shortly after the election. However, at this stage, it is looking increasingly unlikely. House Speaker Nancy Pelosi has repeatedly described President Donald Trump’s stimulus offer as grossly inadequate. The sell-off in stocks today was sparked by Treasury Secretary Steve Mnuchin’s pessimism. After another conference call with Pelosi, he admitted they continue to be far apart on certain issues and getting something done before the election will be difficult. This suggests that he’ll push harder to get Congress to allow the government to tap unused Paycheck Protection funds. Meanwhile, the longer that fresh aid is withheld from Americans, the more difficult it may be for the recovery to continue.
Second Wave of coronavirus can be another issue. Italy reported its highest ever daily virus cases, while Germany is closing in on its record high. France declared a national state of emergency that will mean curfews for major French cities. The Eurozone economy will be hit hard by the second wave which can be negative for the rest of the world equities as well.
Taking into consideration above mentioned facts and by using technical analysis as a Trading Academy team we beleive the current sell off in equities can last for a while by offering us short term sell opportunities.
Selling S&P500 with a TP at 3300$ can be a possible option.
Trade closed: target reached