Here’s the Bottom Line When It Comes to Day 2 of the Election Race of a Lifetime

Shah Gilani Nov 05, 2020

There’s no shortage of crazy things happening in the U.S. and the world today.

But, it’s crucial to break down each event and analyze it individually, because if you don’t, you’re going to be caught in false narratives and will inevitably be overwhelmed.

So, here’s what’s on my radar today:

First and foremost, we’re seeing markets rallying like the Dickens; putting that in perspective, what we’re seeing is an election-driven reaction.

Big tech stocks are leading, specifically the mega-cap tech darlings, so the S&P 500, Nasdaq Composite, the Nasdaq 100, all the ETFs laden with all those capitalization-weighted behemoths are going up because of their outsized weightings, with their increasing weightings courtesy of their increasing prices.

That’s what’s taking benchmarks higher. Interestingly, meaning importantly, we’re not seeing the same huge increases in the Russell, or in other indexes that aren’t tech- or mega-cap tech-dominated.

What’s this telling us? It’s telling us that investors are going into big tech because, number one, that’s where the liquidity is, that’s where they can create momentum. Big tech is safer antitrust-wise, if President Trump isn’t threatening them like what his DOJ did to Google a month before the election, like his hammering social media companies because they censure him and some Republican voices.

It’s about Biden’s lead but not a big Blue Wave, where voices on the far left are also pounding big tech names on antitrust anticompetitive grounds. As a result, tech stocks are saying, “Whew, we sure dodged a bullet,” and investors are bidding them up.

This is no different than what we saw in August when the markets rallied and looked to make new highs due to the Nasdaq stocks.

In terms of the election, results SEEM to be favoring Biden, but that doesn’t mean they will end up there. The potential risk with this rally, regardless of how strong it looks, is that it may not last.

Next, let’s not forget that the world outside of the election still exists. COVID-19 cases are still on the rise as we move into fall, winter, flu, and holiday seasons.

Things were “okay” until we saw hospitalizations increase. As a result, we may get another round of lockdowns – and that is far more likely to occur under a Biden administration. Nobody’s talking about that. When it comes to the economy and reopening, Biden isn’t Trump.

Take stock of things going on beyond the election. Ask yourself what is actually going on. You can’t lose sight of the whole picture by zeroing in on just one fraction of our reality.

Now, when it comes to moneymaking opportunities right now, you CAN chase the stocks up… there should be further momentum with the prospect of stimulus, with the prospect of a vaccine, but I strongly, strongly advise that you keep a close eye on your stops.

Why? Because a fast and furious as this rally is, it could peter out on the other realities.

Alternatively, you could follow the one guy who can pull an obscure, yet highly lucrative, pattern out of any situation in the market. No one else has been able to identify the patterns he has – and by now, you probably know I’m talking about Tom Gentile, America’s #1 Pattern Trader and a friend and colleague of mine.

Tom’s applied these crazy rare patterns to numerous trading strategies, and was subsequently able to set up a series of potential “Payday Appointments” on the biggest stocks in the market.

All without buying a single share of them.

His strategies and secrets include…

  • Did you know of the 15,000 stocks on the market right now, there’s only 325 you should even care about?
  • How to determine what a stock’s price could look like tomorrow, next week, next month, and beyond…
  • How to “flip stocks” for your chance to double your money within a matter of weeks on the biggest stocks on the market without buying a single share up front…

And that’s only a handful of them.

He’s compiled them all into an eBook you can grab today for only a $1.

Click here to learn how it can be yours.

Bottom line – stay the course, remember that the trend is your friend.

Be careful out there, and I’ll be back with you soon.

Sincerely,

Shah

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