Election Result Should Bring Santa Rally
Well, “Get Brexit Done” worked then!
Even the Shadow Chancellor was saying it shortly after the exit polls revealed a giant victory for the Conservatives.
A big relief for all us traders/investors! A Labour win would have seen a massive sell off.
What happens now? I’d love to tell you but I haven’t the foggiest and nor does any other shares commentator really!
The main thing is, the relief is so great that it is likely in the short-term anyway that shares will be much more stable as fear comes out of the market.
It makes the chances of a Christmas rally more likely – last year was the first year it had not happened in quite a number of years.
Next year? Well, Brexit still presents a lot of problems and who knows what Donald Trump might suddenly tweet?
Playing the Christmas rally is usually easiest with a spreadbet. Perhaps either the FTSE or the Dow or the S&P500.
£1 a penny means every time the FTSE or the Dow goes up a point you make a quid; if it goes down a penny you lose a quid.
If you want to give it a go try the Naked Trader Guide to Spreadbetting Edition 2 where there is a whole chapter on how to do it with examples.
In previous years there was usually 400 points of upside so a £10 stake would get you £4,000.
Be careful though: indices can move fast, so work out what you might want to lose if it goes wrong by using stops.
If you did the Dow instead of the FTSE at least it takes out currency influences currently weighing on that index.
Usually the rally is the last ten trading days so roughly day after our election to close to year end.
Sometimes it can carry on into the new year. The last 6 years or so are detailed in the book.
I’ve re-opened the £200 comp in my Christmas/new year podcast for 2019 if you want a go plus lots of shares chat and trading psychology, music and some fun!
It’s all here: https://soundcloud.com/thenakedtrader/christmas-newyear2019
And the last one is here https://soundcloud.com/thenakedtrader/radio-show-the-third
If you get bored or you can’t sleep because the mother in law makes more noise snoring than a plane landing over you on the Heathrow flight path give it a go!
I wish you all a lovely festive season and with the election victory for BJ you might sleep a bit sounder at night!