November 2, 2020
By Mish Schneider
Written by Mish and Forrest
A day before the election carries a lot of emotion and confusion for investors.
You can see this in the market movement today, as the major indices did not align before the day’s close.
The Nasdaq 100 (QQQ) closed down for the day while, both the S&P 500 (SPY) and the Dow Jones (DIA) closed with a doji day.
A Doji day is formed on a candlestick chart where the open and the closing price are relatively unchanged.
Doji candles are looked at as a neutral price pattern and are commonly found in consolidation periods.
While the QQQs, SPY, and DIA closed almost unchanged or down for the day, the Russell 2000 (IWM) was able to close over the 50 day moving average.
Small cap companies are showing to hold up a lot stronger as the other indices are currently floundering between the 50 and 200-DMA.
With this type of market action and with a big unknown coming up tomorrow should people load up on their favorite stocks before the election or wait until the dust settles.
One big question to ask yourself is do I have FOMO?
FOMO or fear of missing out is completely valid to feel right now as the media throws around many different ideas and picks of what you should or shouldn't buy.
While it may be valid to feel, it can be a trap to participate in as it leads to hasty decisions you might come to regret.
Remembering the fact that there will always be more great picks and opportunities in the market is key.
It might even be easier to take those trades when there isn’t a large piece of market moving news coming out.
Russell 2000 (IWM) Unconfirmed phase change to bullish. Confirms if closed tuesday 155 or better.
Dow (DIA) Has to celar 271 and hold 262.
Nasdaq (QQQ) Inside day. 267 has to hold.
KRE (Regional Banks) 42.77 is the 50-WMA to clear.
SMH (Semiconductors) 176.50 the 50-DMA pivotal.
IYT (Transportation) 202 the overhead 50-DMA to clear.
IBB (Biotechnology) Held the 200-DMA at 128.
XRT (Retail) Inside day. Has to hold 49.40
Every day you'll be prepared to trade with: