I've Traded Elections - Here's What Works

Don't Let Election Week Crush Your Portfolio [Trade of the Day Logo] “My Playbook For Election Week” Nate Bear, Lead Technical Tactician, Monument Traders Alliance [Nate Bear] Hey Gang, I live for this kind of moment. Tuesday brings the presidential election, followed by the Fed interest rate decision on Wednesday. I don’t think I’m out of line when I say next week is the most critical test the market has faced since the pandemic. There will be plenty of opportunities…but just as many pitfalls. Fortunately, I’ve been here before. I successfully traded through the last two presidential election cycles. So I know how to capitalize on this event while minimizing risk. I know it can be a bit overwhelming. And if you’re not careful, every tick will feel like an eternity. So, here’s my strategy leading into the election and a stock that I plan to trade. Market Outlook In 2016, markets traded down into the election. The day after, the S&P 500 skyrocketed, creating a 38% bull run that didn’t end until 2018. 2020’s election wasn’t as remarkable. Yet, the market bottomed a few days before and then continued another 48% higher through the end of 2021. The VIX is over 20 because investors are hedging their bets for the election and the next Fed meeting. Once we get past next Wednesday, unless stocks crash out, I expect volatility will collapse. And if it’s anything like the last two election cycles, that means a nice drift higher to close out the year. However, we’re almost guaranteed to get additional volatility. Most traders know this, but they forget to adjust their trading. The easiest way is simply to cut your position size. If you expect volatility to increase by 50%, cut your position size by half. It’s that simple. Because when you get those runners, and especially when you trade options, it doesn’t take a large position size to deliver big gains. The other way to reduce risk is to go further out in time with your expiration dates. Options that expire further down the road don’t move around as much as those with near-term expirations. They do cost more, so make sure to take that into consideration. And yesterday’s [Profit Surge Trader]( discussion highlighted a stock that is perfect for this - Oracle (ORCL). Why I Like Oracle (ORCL) I don’t like to hold options through a company’s earnings announcement. Since we’re in the middle of earnings season, that makes it a bit harder to find a good candidate. However, Oracle reported earnings back in early September, and they aren’t due to report again until early December. That offers the perfect candidate to try some longer-dated call options. However, we need a setup to work with. And for that, we turn to the charts. Here is the 195-minute chart for Oracle: This chart setup uses my TPS framework which incorporates the following: - Trend - Strong bullish trend that’s easy to see. In this case, it’s driven by overnight gaps higher. - Pattern - I want to see price consolidate in a narrowing price range. This tells me that sellers aren’t stepping in. So, all we need is a buyers push to send the stock higher. - Squeeze - When the Bollinger Bands move inside the Keltner Channel, it indicates a price expansion could be imminent. My sweet spot on this one is an expiration before earnings but after next week’s events. So, that would take me to the November 15th expiration cycle. Now, if you wanted to reduce your risk even further, you could go out into the December expiration cycle. But remember, I don’t want to hold the option through earnings. So if this hasn’t played out within a few weeks, I’d be looking to drop it. [Trump to send Dow to 75,000? Details here]( [Trump During the 2016 Inauguration]( The weekly Fox Business contributor who famously predicted the first Trump Stockwave back in 2016 expects the DOW could soon soar to 75,000... Giving Smart American Patriots an opportunity to build generational wealth after four years of failed Biden-Harris policies. It's all thanks to a Trump document codenamed "Document 20". [See the explosive "Document 20" details here]( Ready to Navigate Election Week Like a Pro? Trading through major events like elections isn't just about finding the right setup - it's about having a proven strategy that works in high-volatility environments. That's exactly why I created [Profit Surge Trader](. This Monday's session at noon EST will be our last chance to prepare before Tuesday's election and Wednesday's Fed announcement. You'll get my complete playbook, including: - The exact position sizing adjustments I'm making for election volatility - Setups like ORCL that avoid earnings risk during uncertain times - How my S.A.M AI Scanner is identifying the safest opportunities - My specific game plan for trading through both major events The combination is powerful: My AI identifies the strongest setups while our LIVE sessions show you exactly how to trade them with proper risk management. No more guessing about position sizing or how to handle market-moving events. I've successfully navigated the last two election cycles, and I'll share my complete strategy before these critical market catalysts unfold. Ready to join me and get the complete election week trading plan? [Click here to secure your spot for Monday's crucial Profit Surge Trader LIVE session.]( Let's navigate these markets together. — Nate Bear [AI's NEXT Magnificent Seven]( [Original Magnificent Seven]( The Original Magnificent Seven Produced 16,894% Average Returns Over 20 Years. But the Man Who Called Nvidia at $1.10 Says "AI's Next Magnificent Seven Could Do It Even Faster." [See His Breakdown of the Seven Stocks You Should Own Here.]( [Monument Traders Alliance] Monument Traders Alliance, LLC You are receiving this email because you subscribed to Trade of the Day. To unsubscribe from Trade of the Day, [click here](. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. 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