The election is 25 trading days away, so we will offer our expected trading patterns for the stock market into the election and slightly beyond. You will have a confluence of factors influencing markets over the next 60 days, which will generate two-sided whipsaw action into early December. Fear-based Covid media attacks and riots should be expected to continue. Certain large tech and pharmaceutical interest will add to the attacks on the Trump Administration, as a Biden presidency strengthens their profit models. The Fed will respond in turn to combat these attacks with more and more liquidity injections into the system. Their primary goal is to keep the current financial system intact so they can continue to reap huge financial gains from the American economy. The Fed is a private corporation owned in part by foreign interests, but their main agenda is keeping the dollar inflated and profiting from their debt-control based system. If President Trump is elected, look for him to attack the Fed in his second term as he has done with other entities that harvest excessive profits from the American people. We are politically neutral, but must observe and extrapolate data to forecast future market events. Many nuances of our current financial system are not widely known to most investors, and we welcome any questions about our briefings. Simply email firstname.lastname@example.org and your inquiry will be forwarded to the appropriate department.
The NDX short interest has skyrocketed over the last 10 trading days. This leap is from non-commercial, unsophisticated hedgers looking to protect their mega-cap tech portfolios into the election. We believe the NDX will explode up after October 5-7 in an epic short squeeze into October 22-25. After that, pre-election fear should take hold and a pullback into Election Day should occur.
This pullback will be followed by a brief relief rally before a likely contested election wreaks havoc on markets into the first few days of December. From there, expect a rally into year-end. The exact dates may change, but we see no large trending 4+ week moves near term. Keeping trades short (2-3 week duration) will serve traders best. We expect to harvest tremendous profits for our Gold Members during this time. However, if you are a buy-and-hold investor fear not. The market will reach new all time highs into May of 2021. A strong 4+ month trending rally should start early January 2021 into May.
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