Yesterday's trade had a positive disposition as market participants awaited midterm election results. The stock market's prevailing expectation is that the results will ultimately lead to a legislative gridlock environment that will make it near impossible to approve new tax hikes, large stimulus plans, and stepped-up regulatory pressure. The latter assumption fueled some bargain-hunting along with reports about how the stock market typically performs well in the 12-month period following a midterm election (average gain of 14.7% since 1950, according to LPL Research). As eyes still focus on Mid-term election, market is starting to move meaninglessness fluctuation. As what I mentioned yesterday morning, with a Democrat in the White House and Republicans in Congress, the most likely outcome is a whole lot of nothing for the next two years and the US consumer price inflation (CPI) report on Thursday will mean a lot more to your portfolio. Therefore, I highly suggest to lighten the position.
From tech side of analysis, SPX gave a very interesting long-legged Doji on daily chart, for me, I would like to avoid to participate into this kind of market. No matter you participate into the long-side or short-side of market, the risk/reward ratios doesn't looks very attractive. Therefore, I would to like to take a break today. Even for some interesting buys, I would like to wait until the right time comes.
SPX
SPY
From tech side of analysis, SPX gave a very interesting long-legged Doji on daily chart, for me, I would like to avoid to participate into this kind of market. No matter you participate into the long-side or short-side of market, the risk/reward ratios doesn't looks very attractive. Therefore, I would to like to take a break today. Even for some interesting buys, I would like to wait until the right time comes.
SPX
SPY