The big event we've all been waiting for is now upon us and of course the market has positioned itself right at critical levels in anticipation. The NASDAQ and S&P 500 have been lingering near the top of their downtrend lines for a few days now. They just need a little push to break through those lines. Alternatively, without some impetus to move higher they could easily head back to the bottom of the trend channels. The play here is very straight forward -- play the break of the range of the last couple of days, up or down.
The Dow still has a couple hundred points to go to reach its downtrend line.
As for individual stocks, I'm seeing a lot of names that are very strong (above their upper Bollinger Bands). One of the strong stocks that I'm stalking is the recent IPO SalseForce.com (CRM). It's doing exactly what I love to see IPOs do -- making new highs after building a base of a few months:
The majority of the weak stocks that I'm seeing are drug/pharma companies. Obviously they're poised for the election as well (imagine that). There are some good looking shorts in that sector.
No watchlist today as I'm off to go get in line to vote...
I say go long. No matter who wins the election, the market is due for a couple months of "put back" (as I call it), IMO.
My Election Day play is a medium size Long position in the (QQQ) with a 7% stop loss just in case all hell breaks loose on Wednesday.
^_^
I’ve pulled the rest to cash until Wednesday (I was shorting some energy plays and I really wan to short the bejesus out of (TZOO), but I’ve since sold out).