It’s finally the day when the United States decides who will be our next President. In one of the most volatile and bizarre elections in world history, by night's end the White House will belong to either the first woman or billionaire President.
A Clinton Win:
- Market Rally - Yesterday’s rally was a clear indication that the market is pricing in a Clinton win. We can and should expect continued confidence in the equities indices.
- International Trade - Although Hillary has come out against some trade deals, namely TPP, she is viewed as much more friendly towards international trade. This means currency markets will be moving - particularly pay attention to the Japanese Yen.
A Trump Win:
- Market Sell-off - Most predictions and electoral college maps have Clinton winning. A Trump upset would cause uncertainty and most likely be bearish for U.S. equities.
- Run to Gold - As with any uncertainty, expect a “run to safety” on Gold and Treasuries.
- Currency Bears - Opposite of Hillary, Trump is viewed as a Nationalist, often citing how bad US trade deals are, such as NAFTA and TPP. This means benefactor currencies of these deals will suffer via devaluation of their currency.
These are just a few of the trading opportunities this election is going to give the markets. This is a historic time and there should be some historic market volatility that we can all capitalize on.
If your Trading Combine isn’t going as planned this is a perfect time to reset your account and position yourself to take advantage of the coming days. Otherwise, if you’re not currently in the markets, you won’t want to miss this week’s moves.*
*Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past performance is not indicative of future results.

