Decoding the Markets on Election Day!

(join me live tonight!)

Don Kaufman
November 05, 2024

Don Kaufman here.

The moment we’ve been waiting for is finally upon us - it’s Election Day!

Now is when all our preparation as traders pays off if we know how to read the markets.

I want to break down what Mr. Market is signaling about tonight’s results.

As a trader, you gotta follow one rule - follow the money!

And right now, the money is flooding into the US dollar, which suggests smart money is betting on a Trump victory.

If you don’t believe me, take a look at Bitcoin today…

I don’t get caught up in flashy headlines or wild predictions - I trust the greenback and so should you!

Based on the price action I'm seeing, here are a couple trades I have my eye on:

With Tesla surging ahead of the election, I may look to sell call credit spreads. The elevated premiums from the IV spike provide a nice cushion.
If emerging markets like EEM sell off on a Trump win, I may leg into call debit spreads. The drop in volatility after the event could crush premiums and accelerate gains.
I've got my sights on a potential reversal play in the Nasdaq or QQQ with how extended the move up is. Selling a call credit spread up near the top end would offer a great risk/reward.
Gold and bonds may offer volatility plays depending on if the Fed cuts rates later this week as expected.

Stay tuned for specific trade ideas!

I know with all the excitement today you’re just itching to pull the trigger on those butterfly trades.

I get it, believe me! But the real payday comes from having patience for actual results, not making impulse trades based on a hunch.

Keep that trigger finger steady for now!

We’ve got some great earnings to look forward too this week, including QCOM, ARM, APP, TTWO, ABNB, TTD, SQ, MNST, and NET.

If you still don’t know how to trade this using my Earning Flips Strategy, click here to find out more.

Once these election results start rolling in, you know I’ll be live breaking it all down!

The whole team will be here - Brandon, Blake, Tony, Gianni, all the usual suspects.

Don't forget the Fed is expected to cut interest rates later this week. Rate changes cause volatility in bonds, gold, the dollar, and more.

Set calendar alerts for Fed announcements so you're ready to trade the reaction.

Understand the mechanics behind Fed policy and what markets it impacts. Check out my video course for more on trading the Fed. The link is below!

Major events like this are when veterans like me earn our stripes, and newbies can take a giant leap forward.

Stick with me, kid! I’ll have you trading this market action like a pro.

But for now, take a breath and trust the process.

Opportunities await - let’s grab ‘em by the horns!

To your success,

Don Kaufman