Election Crash Coming
StatsEdgeTrading
Hey everyone, I wanted to hop on and give a quick midweek update based on what I’ve been seeing in the markets and some feedback from the StatsEdge Pro community. We’ve had a bit of turbulence, particularly with the market being led lower by Nvidia and a general pullback across the board. If you’re part of StatsEdge Pro, you already know we’re navigating these conditions with some great algorithm-driven trades.
Why Are We Seeing Choppiness?
I've been mentioning for a while that we are entering a seasonally choppy period, particularly as we head into the later months of the year and the U.S. election cycle. Historically, markets tend to face uncertainty around this time, and that can lead to erratic behavior. Add to that the fact that we’re approaching all-time highs, and you get a recipe for some back-and-forth price action.
While I’m not one to rely solely on seasonality, these patterns—especially around election cycles—are something to consider. Big players might hesitate to make large bets, waiting to see more clarity around the election results
How Am I Trading This?
At StatsEdge Pro, we use multiple algorithms that help us navigate different types of market environments. Right now, in a potentially choppy market, I’m focusing more on pullback and revision-to-the-mean strategies rather than pure trend-following. For example, stocks like EVRG, a power distribution company, are setting up as safer plays in this environment.
This week, I took a trade in SMTC, which perfectly hit a pullback level and rebounded. It’s a great example of how strong stocks in a weak or choppy market can still offer opportunities, especially when you're not just blindly buying breakouts.
What’s Next?
If the market continues to follow the choppy seasonality I expect, I’ll keep focusing on pullback and revision-to-the-mean strategies. But if we break to new all-time highs and continue upward, I’ll still have exposure through some breakout strategies. The key is to allocate time and capital based on what the market is showing us.
If you’re interested in more insights like this, along with access to my algorithms, make sure to check out StatsEdge Pro. Until next time, stay smart and trade with an edge!