GO
Loading...

Pro: Your Election Day Trade

Tuesday, 6 Nov 2012 | 9:54 AM ET

Expect light trading on Election Day. Equities traded higher Tuesday, as momentum from Monday's higher low, and the U.S. dollar weakened, help the bid side.

Comstock | Getty Images

The S&P 500 index hit its highs Tuesday morning, just below the major 1,418.25 resistance level. I will think it would be conservative and smart to wait for the market to get over 1,415 and against this resistance level before selling. However, as I watch the market Tuesday morning, I am not in a hurry, and do not want to fight the tape. I will keep a close eye on a day trade to sell, and may wait until after the cash market opens Tuesday at 8:30 p.m. CT.

How will the market react to the outcome of Tuesday's election?

(Read More: Presidential Candidates Make Final Sprint in Key States.)

Well, it is a bit uncertain. If Republican challenger Mitt Romney wins over President Barack Obama, I believe the market will trade higher initially. Still, after the luster of initial days wanes, there will still many issues on the table — such as the "fiscal cliff," European debt crisis and China. Not to mention the question of whether the U.S. Federal Reserve will continue to accommodate poor economic conditions by way of quantitative easing — a bond-buying program.

(Read More: 'Fiscal Cliff' Deal Won't Help US Rating: Egan-Jones.)

I will look to see light support at 1,410 - 1,412, which would also provide a buying opportunity on day trades. A close on the highs will likely send this market up to the 50-day moving average at 1,428.50.


Read on for 10 Things You Need to Know to Trade Futures

Watch "Futures Now" Tuesdays & Thursdays 1p ET exclusively on FuturesNow.CNBC.com!

Like us on Facebook!
Facebook.com/CNBCFutures

Follow us on Twitter! @CNBCFutures

Questions? Comments? FuturesNow@CNBC.com

Featured

Contact Blog

  • Showtimes

    Watch Futures Now Tuesdays & Thursdays 1p ET exclusively on cnbc.com!

Sponsor Links

  • CME Group brings buyers and sellers together through its CME Globex electronic trading platform and trading facilities in New York and Chicago.

  • Take your trading to the next level with a platform that lets you trade stocks, options, futures and forex all in one place with no platform or data with no trade minimums. Open an account with TD Ameritrade and get up to $600 cash.