The results are in. Markets voted green!
That’s right, Wall Street gave the election a thumbs up. The Tuesday night countdown sounded a lot like a rocket launch party.
3… 2… 1… BLASTOFF!
The S&P 500 soared 7.3% and the Nasdaq jumped 9% on the week—the best weekly showing since April.
That, folks, is what I call a face-ripper—the kind of rally that causes people to stare at their portfolios in awe. Those are fun times when you’re long amazing stocks…
You may be asking why the rally is happening right now.
The real news for the market wasn’t the presidential election at all…
The thing that sent stocks soaring was the Senate race… where, as of now, Democrats don’t hold a majority.
And if that’s the case, markets are cheerful. A Republican majority would mean no blue wave. That means reforms are less likely.
Wall Street likes that.
Now, add the latest Pfizer vaccine breakthrough, and you have a recipe for even more highs.
But forget about the why and the how. Like I said last week: I always bet on America, no matter what. That’s how you build wealth in the stock market.
And from the looks of it, we have more upside in store.
The election trade worked like a charm…
Back in late September, I told you how Big Money tends to sell stocks before Election Day, and buys them shortly after.
I hate to brag, but my election study played out almost to a T.
Below are the daily Big Money signals. Green bars mean buyers won the day, while red means sellers.
I’ve circled the important piece: the election trade. As you can see, Big Money dumped stocks heading into Tuesday, only to bump them after.
And I think there’s more gas left in this market.
Big Money Index points to liftoff
They say the trend is your friend in the markets. The best way I’ve found to identify the trend is by looking at the MAPsignals Big Money Index—a moving average of Big Money buys and sells in the market.
When it’s heading higher, like now, it means money is pouring into stocks. That’s bullish:
If you’re wondering whether we’re overbought after such a big rally… our data says no. That red line is much higher than where the BMI sits today—another feather in the bull’s hat.
Look, I’m trying to keep it simple here. Betting on America tends to be a winning recipe. We know this because great stocks head higher year after year.
And while binary outcomes happen from time to time, don’t let fear sideline a sound investing strategy. A single bad move can be costly.
We just witnessed a rocket launch party. I hope your portfolio enjoyed it as much as mine did.
Editor’s note:
We may have a declared winner in the 2020 race for U.S. president…
But the fallout from this contentious election is still forthcoming… And it’ll result in nationwide chaos.
The good news: Chaos often creates opportunity.
And with the right moves today, you can not only protect your portfolio… but position yourself for the kinds of gains investors dream about.