So what does everyone's crystal ball say for the next two months? Into inauguration timeframe to pick a date. You don't have to type a novel like I do but a quick opinion would be great. None of this affects my core DGI strategy much but most of the active participants on this thread trade at least a little.
Up- a little or a lot?
Down- a little or a lot?
Choppy and rangebound?
Did I miss any obvious triggers?
Severity of Covid and potential lockdowns.
Christmas Season
Senate runoffs in GA
Stimulus
My crystal ball says rangebound and occasionally choppy. Continued sector rotations while the market searches for a daily/weekly theme. Near zero chance of a significant near-term pullback unless Covid causes an Armageddon response like March. I do think a few states will do that in vain, but mostly not. Christmas season is usually good but I don't see much out there that doesn't already have that baked in. Senate elections are a big deal only if the DEMs take the Senate. Might not cause a crash but it would cause an extreme sector rotation for sane investors. Assured gridlock is a non market mover IMO. I've given up even predicting a stimulus date but there will be one, and I will be in the market when it happens. That could very well be half our potential 2021 gains. I don't think the market pays attention to real economic numbers until 2021.
I truly don't have a favorite sector that hasn't run up excessively already. 5-10% dips and I add a few shares in good companies I'm not afraid to hold. I'll keep selling puts but I am not going to crowd the strike price like I usually do until the world settles down some. I don't want to be forced into 1000 new shares the same week.
Opinions? Especially your favorite sectors because I really don't see much to entice me.
Up- a little or a lot?
Down- a little or a lot?
Choppy and rangebound?
Did I miss any obvious triggers?
Severity of Covid and potential lockdowns.
Christmas Season
Senate runoffs in GA
Stimulus
My crystal ball says rangebound and occasionally choppy. Continued sector rotations while the market searches for a daily/weekly theme. Near zero chance of a significant near-term pullback unless Covid causes an Armageddon response like March. I do think a few states will do that in vain, but mostly not. Christmas season is usually good but I don't see much out there that doesn't already have that baked in. Senate elections are a big deal only if the DEMs take the Senate. Might not cause a crash but it would cause an extreme sector rotation for sane investors. Assured gridlock is a non market mover IMO. I've given up even predicting a stimulus date but there will be one, and I will be in the market when it happens. That could very well be half our potential 2021 gains. I don't think the market pays attention to real economic numbers until 2021.
I truly don't have a favorite sector that hasn't run up excessively already. 5-10% dips and I add a few shares in good companies I'm not afraid to hold. I'll keep selling puts but I am not going to crowd the strike price like I usually do until the world settles down some. I don't want to be forced into 1000 new shares the same week.
Opinions? Especially your favorite sectors because I really don't see much to entice me.