Our Macro Market Outlook Before Elections

[RagingBull Elite]( Dear Trader— Jeff Bishop here, The market was largely ‘risk-off’ over the past week, as participants favored selling stocks over buying them. The market felt the weight of uncertainty ahead of elections and around the flood of new virus cases catching the headlines. Here at RagingBull, we have our own opinions. But one thing is for sure, the VIX— or “fear index”— jumped to the highest level we’ve seen since June. It closed the week at 38.02. Those heights are enough to give you the goose bumps, given its historical average is around 19. In today’s issue of All-Access, we want to fill you on what to expect in the week ahead, based on 3 charts that provide a macro perspective. By the way, don’t miss my [highest-conviction trade of the week]( dropping tomorrow. [I'm an image] Last week, the stock market saw the worst losses since March: S&P 500 lost 3.85%, and Nasdaq Composite closed down 3.9%. Market participants are positioning for the upcoming elections while the pandemic numbers are picking up. While SPY is currently sitting below critical short-term moving averages, it’s still trading a good amount above the 200-day SMA, one of the most important indicators for longer-term investors. The short-term trend is to the downside. However, given all the uncertainty in the market, it would be foolish to be biased aggressively long or short. Whenever a binary event is on the horizon, it is prudent to trim your short-term exposure to risky assets like stocks and wait for a confirmation to get back in. Today we will take a look at the top 3 asset classes to watch into the upcoming election besides the S&P 500: Nasdaq 100 (QQQ) [Alternate text] Technology stocks led the market higher since the March bottom. The leadership was fueled by growth of the Work-From-Home stocks as well as the overall resilience to the global quarantine. QQQ put in a top at $303.5 in the beginning of September and then failed to get above $300 in the beginning of October. Currently, the index is trading in a wide range between $260 and $300. There are a lot of cross-currents under the hood, for example, the earnings sell-offs in AAPL, FB, and AMZN. To keep things simple, $260 is the first area of support that needs to hold for the QQQ uptrend to stay intact. While it is possible for the Nasdaq 100 to come under pressure and mid-caps or small-caps lead the overall market higher, QQQ is one of the most important gauges of the overall market health. Gold (GLD) [Alternate text] Gold is another key asset to keep on your watchlist. Gold represents an inflation hedge, meaning it goes up when the inflation is rising and goes down when the inflation stalls. Since the Fed stepped in with an asset repurchase program and a promise of prolonged zero interest rate policy in late March, the expectations for run-away inflation triggered a massive rally in gold. If GLD manages to break above the descending trendline, it could indicate another leg higher in expectations for the inflation. That could potentially be a bullish signal for the stock market. Treasury Bonds (TLT) [Alternate text] The U.S Treasury Bonds are usually considered to be the safe haven for investors and governments all over the world. In theory, when the stock market goes up, bonds go down and vice versa. As you see on the chart, TLT hit its peak in the beginning of March, when the stock market was taking a nosedive. In practice, the relationship between the stock and bond market is much more intricate and cannot be covered in the scope of this email. Whenever the stocks are volatile, keep TLT on your watchlist for potential clues about the overall market. If there’s one person traders should lean on during during this time of uncertainty, it’s Wall Street’s #1 macro trader, JC Parets. Wall Street pays him $10,000 per day for his insights— [see what market insights he’s giving away based on what he sees right now.]( [Alternate text] We all know that options can put traders in a position to make a lot more money in a much faster time than stocks. How do traders get started so that they also manage risk? I dressed up for this presentation to share insights on the 3 most important pieces of an options price... - Intrinsic value, what it’s worth if you exercise it today - Time value, how much time is left on that contract - Implied volatility, how much does the market expect the option to move with the time left on the contract [Alternate text]( [Watch the video]( [Alternate text] [Dirty Money: Goldman Sachs Nabbed For $2.9B]( By Ben Sturgill of Daily Profit Machine [Alternate text]( [[Bonus Pick] Plus 3 Tips For Tackling Volatility]( By Dave Lukas of Options Profit Planner [Alternate text]( [Should You Be Setting Weekly Profit Goals?]( By Nathan Bear of Weekly Money Multiplier [Alternate text]( [When The Markets Move, Focus On This]( By JC Parets of Chart Hunter [Alternate text]( RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 [Click Here to stop receiving emails from support@ragingbull.com]( [Unsubscribe from all RagingBull emails]( DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at [(. 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