Tom Gentile

Posted in
Big Picture

By: Tom Gentile
August 30th, 2024

4 mins read

Potential for the Markets No Matter Who Wins the Presidential Election

We all have a big decision coming up in November. For some it is an extremely easy decision and for others it may be a bit more concerning. I am not going to engage you all in a discussion as to who you feel will win or who you want to win the US Presidential election. I am going to provide you all with some insight from an options trader’s point of view as it pertains to just that – trading.

Here is some insight I provided to those I educate from back when the Presidential debate took place between Donald Trump and President Joe Biden

Note this was back before Biden withdrew his name from contention and Kamala Harris became the Democratic nominee. The fact that Vice President Harris is now the nominee doesn’t really change my thoughts of what I wrote a little bit ago, so I feel it is still ok to show you what I saw and felt.

 As a rules-based trader, I can’t afford to get political.

Politics is all about emotion. In fact, the same emotions that motivate voters tend to sink novice traders: fear and greed. This is why I tend to stay away from politics.

But political events – like the coming election – can generate some incredible profit opportunities for traders who know where to look.

So last Thursday, like tens of millions of Americans, I watched the first of potentially two presidential debates last Thursday night between President Joe Biden and former President Donald Trump.

I’m not going to tell you who I think won or lost. I’m not going to tell you which candidate performed better. I’m not going to tell you for whom I’m voting. And I’m certainly not going to tell you for whom to vote.

But here’s what I’ll tell you: Biden (and instead now, VP Harris) and Trump present different opportunities to profit in the markets depending on who wins in November.

That’s why we pay attention to politics – without getting caught up in emotions that can impact our trading.

Right now, the race looks like a coinflip. Even with VP Harris as the Democratic nominee it still seems like a coin flip.

Ss a trader, you have to set your political biases aside and prepare for both outcomes – that way, you can be profitable no matter who wins. And that’s what I did at that last debate.

After that debate this is how some markets reacted.

Image

This is the top movers in the S&P 500 for Friday, June 28 – the day after the debate.

On the left, we have the S&P 500’s top gainers for the day. It’s mostly financials. Those are definitely what I’d call “Trump stocks.”

On the left, you have the top losers for the day – and once you get past some of the big names on the list like Meta Platforms (META) and Disney (DIS), you see stocks like NextEra Energy (NEE) and Enphase Energy (ENPH). Clean energy stocks. Those are definitely what I’d call “Biden stocks.”  Again – I feel these are still the same with Harris as the nominee so now maybe I refer to them as “Harris stocks”?

It does not matter anymore who won that debate as that is not the situation we are all faced with.

What is going on now with the candidates is what we are dealing with now, but what we got then is still intact, as I see it, we have a targeted list of stocks we can profit from no matter who wins in November.

Keep an eye out for future announcements from me as to when I will run a presentation on stocks that will perform well no matter who wins the Presidency. Whether you catch it live or in a recorded video I will educate you on what the data I researched found as to stocks that should do well based on the fact they have done well in the past over presidential elections.

The intent of knowing this is to be able to find opportunity where most others may not know it or see it or be blinded by the fact they are only paying attention to stocks that will do well with just THEIR ideal winner gets elected.

As a Rules Based Trader, my goal is to spot an opportunity, build acceptable risk trades, and manage them as effectively as possible.

Knowing which stocks have a habit of strong performance no matter who wins an election is a great way to prepare and position myself for positive results om my options trading.

To your success,
— Tom Gentile

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