Just one hour ago the news came out that Mr. Trump will probably be the winner of this presidential election. Besides of political implications due to this facts, this is a surprise for the stock market participants.
After the FBI- news announcement on Monday morning which pushed Ms. Clinton into a very good position for the vote, the stock markets already started to race some points up and there was generally a positive climate.but given due to this unexpected outgoing of the vote volatility is coming back again and the markets are opening with big Gaps.
Given due to this unexpected outgoing of the presidential election, volatility is coming back again and the markets are opening with big Gaps.
In my opinion, this can be compared with the BREXIT decision in Europe,after the BREXIT decision which was also unexpected like the Trump win, the markets were falling very deep. The german industrial index #DAX lost 1000points overnight whereas the SP500 #SPX only lost 100points in two days.
Only two months after the Brexit the #DAX is more then 1500points higher and found its bottom on the day after the Brexit, also the #SPX was only 2months later more than 180points higher. Due to the reason that I see these events as very similar to each other, I would propose to start buying at least index ETFs on both of these indices. Not only #SPX and the german index can be bought, all indices are mostly running at a similar level this gives us also a chance in the #QQQ and the #DOW.
Long ETFs:
- SP500 —–> SPXL -ETF (3x leveraged)
- NASDAQ–> TQQQ (3x leveraged)
- DAX30 —-> GY3L (3x leveraged)
EDIT:
opening price 09.11.2016 -09:00 -MEZ +1
DAX; 10173
SP500: 2082
NASDAQ: 4760
After market-opening make sure to wait for plateau building, then a mid to long term entry in indices or direct stock investments makes definitely sense.
Tom
