The US Presidential Election is on Tuesday (3 rd November) and following the previous trends of US elections, the market is most likely to correct by a factor of 7%.
Prediction:
US election 2020 : 3 rd November
NIFTY (7.23%) / SENSEX (6.14%) / NYSE(7.1%) / NASDAQ(8%) / TOPIX(9%)
Historical Data:
US election 2016 : 8 th November
NIFTY (8%) / SENSEX (7.2%) / NYSE(5%) / NASDAQ(5%) / TOPIX(15%)
US election 2012 : 6 th November
NIFTY (3%) / SENSEX (4%) / NYSE(4%) / NASDAQ(5%) / TOPIX(8.6%)
US election 2008 : 4 th November
NIFTY (6%) / SENSEX (7%) / NYSE(17%) / NASDAQ(27%) / TOPIX(10.2%)
Due to elections the stock market will be seeing a volatility of 7%, but this is just short-term volatility, so day traders and swing traders have to be careful. Long term investors should not worry about such corrections. Such corrections are a good opportunity for new people to enter the market or for existing players to buy new positions.
After the correction we can see a bullish pattern based on previous trends as Winter approaches and investors get bullish during Christmas time.
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