11/08/2016 Recap - members only Election Eve

No sense spending too much time on the recap. It was a green day. Bulls shrugged off a pre-open sell off to close +.5%. This was 8 S&P points off the highs which was the extent of the bad news for bulls today.

Bulls remain dangerously in control and with no regards for downside potential.

To have the VIX be red on the eve of the bigger binary event we've had is baffling but representative of how reckless traders have been.

You can thank central banks (the Fed) for that giant safety net that they refuse to remove.

Tomorrow is completely dependent on 1) Who wins, 2) How they win, and 3) how traders will react to it:

  1. If Trump wins we fall.
  2. If Clinton wins by a big margin BUT doesn't win the house/senate we rally.
  3. If she wins AND she wins the house/senate, we fall.
  4. If she wins by a small margin, then Trump will contest and we fall.
  5. Misconception: We are told to believe that Wall St fears Donald Trump. It think Wall St fears a Republican president not specifically Trump. Because that would put too much power in the hands of 1 party and there would be no gridlock. Gridlock is good since it = no change. A trump win = a LOT of potential change... Change = uncertainty.

I am sure there are other scenarios as I am not a political correspondent but that's how I see it.

The infrastructure wants a Clinton win so I am sure they will do all that it takes to get it and that includes bending a few rules. Yep,

I've said it so you can rest assured that Trump will say it too.


Nic

Posted to Create Income with Options … on Nov 08, 2016 — 4:11 PM

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