Is The Market About To Crash After Midterms? (KNOW THIS NOW)
In a Nutshell
Markets are selling off due to shifting political expectations, with the correlation between Democratic midterm gains and declining stock prices appearing more than coincidental. The presenter warns against shorting oversold levels or overexposing capital now, advising investors to keep cash ready for potential cheaper prices while avoiding leverage.
These notes were generated by AI and may contain inaccuracies.
Markets have been selling off with a noticeable shift occurring. The correlation between markets beginning to sell off and the probability spiking for Democrats to win the midterm election is significant. As soon as Democrats were expected to win by a substantial margin, markets began showing signs of lower lows and lower highs. Democrats have not always been viewed as best for public companies and growth, particularly those heavily investing into AI.
Many public companies reported great earnings, but they are aggressively investing into AI with expectations for 2027 not expected to slow down. Inflation concerns and capex concerns were known factors leading into when markets made new all-time highs. The only real shift that began occurring was when Democrats were viewed as winners for the midterm election.
Trades taken include a position on Intel that resulted in over $6,800 profit, with one share remaining. The trade involved shorting then going long leading into close, then closing into overnight hours. A trade on Micron resulted in $665 profit. Live trading occurs every morning with the LPP team.
Americans no longer trusting Republicans based on what Trump campaigned on versus what he has actually done. Trump campaigned on removing federal income tax and no new wars, but did the exact opposite. Americans are hurting but there is no accountability being taken. There should be no blind support for any political party or individual just because someone voted for them, especially when conflict of interest and corruption are visible.
Markets are currently retracing with a shift in the possible political landscape. The midterms are to be officially confirmed tomorrow. If Democrats win, market reaction will be observed along with how Trump reacts. If Republicans lose the midterm election and Trump goes ballistic against Iran, oil prices will increase. If oil goes up, markets will go down, inflation goes up, and the probability for another rate hike will increase for the next FOMC rate decision.
Markets long-term have always been more bullish than bearish. Beginners should not short at oversold levels. Instead, watch companies to invest in long term once markets begin to recover, or position appropriately by buying the dip. Do not buy too much at current levels knowing prices can get cheaper, as this leaves no capital available for further opportunities. Have money available if prices get cheaper. Do not overexpose early and do not use leverage. Only use money that is actually available and could be afforded to lose.
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