Here is an interesting section to the movie, The Big Short...
"Brownfield fund - investment strategy was simple. people hate to think about bad things happening, so they always underestimate the likelihood."
"Brownfield fund strategy - markets will sell options very cheaply on things that will never happen. so when they were wrong, they lost a little. when they were right, they win big."
While crystal ball's are not technical, I have a few ideas on what this market will do next 3 months.
(I backup my theory with charts).
Buy the rumor, sell the news...
Clinton is the rumored ahead and nominated president on 11/2 or Trump is nominated president. The market rallies ahead of the announcement, and once it is official, the market sell off begins.
A more volatile market if Trump is president.
Either way, the market will have priced in a "good" outcome, and selloff anyway.
tb
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