It seems everyone and their brother are expecting Biden win – and stocks led by tech have taken off understandably. But my point is not to debate whether he would be declared by the media as winner in Wisconsin, Michigan, Maine, Arizona or Nevada.

Given the Rust Belt situation, I look for Team Trump to introduce some uncertainty into the markets, and the question to me is when would that happen. I.e. when would the proceeding be initiated. Not that they would not find reasons good enough to take legal action.

If you remember, the S&P 500 plunged overnight to 3320 when Trump declared victory. Should the markets feel getting rocked, they might throw a tantrum again. After all, it's the size of the stimulus that's at stake.

So, it makes sense to tighten the open trade parameters, because the wild intraday swings aren’t over in my view - please see Trading position section for details.

Trading position (short-term; futures; our opinion): long positions (100% position size) with stop-loss at 3430 and initial upside target at 3550 are justified from the risk-reward perspective.

Thank you.

Monica Kingsley
Stock Trading Strategist
Sunshine Profits: Analysis. Care. Profits.