Post-Election Breakouts to Trade: Apple, GLD, SLV, USO, and IWM
The big question is: When will gold and Apple shares bounce?
The price of silver moves similar to that of gold. While the charts look the same, silver is highly volatile and can super-charge your portfolio when metals rally.
Crude Oil Spot – United States Oil Fund ETF (NYSEARCA:USO)
Crude oil has been correcting for a couple months as well and still has a lot of work to do before a new uptrend is triggered. Currently oil is trading in the middle of its trading range, but once the price breaks above $93 per barrel, a good investment fund would be USO.
Russell 2000 Small Cap Index (NYSEARCA:IWM)
Small cap stocks typically lead the broad market in both directions. They are the first to rally and the first to rollover and sell off. The major indexes like the Dow (INDEXDJX:.DJI), S&P 500 (INDEXSP:.INX) and NYSE (NYSE:NYX) have not formed clean chart patterns, which is why my focus is on the Russell 2000. Small cap stocks are now showing a rising relative strength compared to the S&P 500 large cap stocks and this is very bullish for stocks in general. The best way to trade this index is through the exchange traded funds IWM and Direxion Daily Small Cp Bull 3X Shs ETF (NYSEARCA:TNA).
Post-Election Trading Breakout Summary:
In short, history shows that equities tend to rally after an election. For a detailed outlook of how to trade stocks and indexes during the election cycles, be sure to read my report, The Election Cycle – What to Expect in Stocks & Bond Prices.
Editor's Note: Chris Vermeulen offers more content at his sites, TheGoldAndOilGuy.com and Traders Video Playbook.
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