FBI Director Comey Slump and Pump
On Friday October 28th at 2PM James Comey, FBI Director hit the market with a tape bomb.
He said that the FBI is looking into 650,000 new emails regarding Hillary Clinton’s private email server.  This was massive news, considering it was important enough to announce 11 days before the election.
The markets reacted accordingly, selling off over 1.06% in less than an hour.
The Week After – The Comey Slump
The following week was worse for markets, with all asset classes selling off as markets went into risk-off mode, and chased the safety of gold and the Japanese Yen.
The Week Following That – The Comey Pump
On Sunday November 6th, just 2 days before the election Comey made news again, this time announcing that the FBI did not find any new evidence to open a new investigation or indict Hillary Clinton. Â Everyone that opened shorts to speculate or hedge their portfolios was forced to cover quickly.
As of the 6PM EST SP500 futures open, the market was up nearly 25 points. Â On Monday November 7th, assets ripped another 24 points higher by the 5PM EST close.
Just like that, the Comey pump was nearly complete and the market got to within 4.5 points of Friday October 28th’s 2PM announcement.
What’s Next?
The markets have now priced in the fact that Hillary will walk from the private email scandel, and is now making a bet that she will win the presidency. Â I think the odds are definitely in her favor, but if we know one thing it is that markets throw us curve balls often.
If she does indeed win the presidency, risk assets will continue  to rally, but I think a lot of that excitement has been baked in already as of Monday November 7th, and the upside could be limited.  One thing is for sure, if you thought today was volatile, wait until you see tomorrow.
If you are not planning to do anything about it (make trades or re-position your portfolio), then you should probably not look at the charts tomorrow at all or risk getting seasick.
Have a great evening and all the best for tomorrow – it will be full of great opportunities for traders.
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The information contained in this post is solely for educational purposes, and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. TRADEPRO Academy is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.
