TRADING TIPS

Rich Wants to Know About the Election Rally

Hubert Senters here. Got a question from Rich. The Dow has reacted to the election in a very positive way while the Nasdaq has been selling off. Is there any reason you can see for such a divergence, are tech stocks sudenly out of favor or is the market anticipating more tech regulation coming out of DC? It’s two fold. Like you had the election where they’re looking like they’re projecting by the wind. And then also you had the Pfzer 90 percent effective vaccine so it’s two fold. So a lot of the covid stocks like Peloton and Zoom stuff are going to sell off because mainly the reason they weren’t working is because they were making massive amounts of money fundamentally from people who stand their home buying the Peloton box and be on Zoom calls all the time. It’s two fold. It’s not just the election. And then when you’re thinking about like the markets don’t like uncertainty. If you have a democratic president and then if the republicans either. Heads up, I’m not into politics but if the republicans control either the Senator house it means not a whole lot of stuff is going to get done. The market doesn’t like uncertainty. It’s going oh, the likelihood of the democratic president to be able to pass something through either the house of the senate is lower because the republicans control one of those. That makes the market go. Ok, I don’t have anything to figure. And that’s why they do it. There’s a lot of rotation out of covid type related stock which were mainly heavy in the Nasdaq exchange and rotating it to not just the Dow but also the Russell. I hope that helps. We’ve got a webinar tonight with Mark Helweg ”The Simple Way to Trade These Complex Market Conditions” Tuesday, November 10th at 8PM EST. I will HYPERLINK you to the registration page. Good luck. Hope it helps. See you on the next video. Hubert.

1 Comment

  1. Ronald Rose

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