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As I write this, 143,403,939 votes have been counted so far, and we're still waiting for major states like Georgia, Pennsylvania, and Arizona to confirm a winner.
I swear - I'm checking the live map of the electoral college like I'm watching a football game and my team is going for it on fourth and three at the two-minute warning.
And while we wait for this monumental announcement declaring who will be running the country for the next four years, I think we should get some profit plans in place.
It's no surprise that the market will be influenced by the result of the election.
That's exactly why I sifted through and narrowed down the biggest moneymaking stocks to play once the new president of the United States has been announced...
Profit on Short-Term Plays No Matter the Outcome of the Election
With mail-in and early votes still being counted, at this stage, it could be hours, days, even weeks before we know anything more than we know now.
This indecision creates volatility in the market - we're currently seeing the market extend gains, but predicting direction is risky.
Many experienced traders are sitting on the sidelines until a winner is declared.
But once a winner is decided and the indecision wanes, one thing is certain... a solid direction will emerge.
As I wrote last week, patterns show that if a Republican incumbent is reelected, the market will rise into the end of the year, and on the flip side, if a Republican incumbent loses, historically, the market drops during the same time.
So, a straightforward play is to go bullish if Republicans win and bearish if Democrats win.
Over the long haul, the sectors I have listed below will benefit depending upon which candidate wins - and this is where you should look to place your money.
If the Republican incumbent wins, expect the following sectors to rise:
No. 1: Oil/Gas
The simplest way to trade this sector is with the United States Oil Fund ETF (NYSE: USO). Simply buy and hold this stock that tracks the price of crude oil. Supercharge your returns by selling 30-day covered calls.
You can also trade the sector with Select Sector SPDR Trust Energy ETF (NYSE: XLE).
Increase your returns by trading the most bullish stocks in the sector.
The top-performing stocks in the oil and gas sector are:
No. 2: Financials
Trade the entire sector with the Select Sector SPDR Trust Financial ETF (NYSE: XLF).
Supercharge your returns with these top two performers in the sector:
No. 3: Aerospace and Defense
Republican presidents tend to have a strong national defense platform.
The following defense stocks will be smart buys if there is a reelection:
If the Democratic candidate wins, expect the following sectors to rise:
No. 1: Gun Stocks (Short-Term Play)
When a democrat unseats a republican president, gun makers typically benefit before the new president takes office due to the potential for increased regulation.
Consider the following two gun makers:
No. 2: Renewable Energy
Renewable energy is a very hot sector, and one we touched on back on Aug. 16, 2020.
Here are six great renewable energy plays for 2021 which should receive an additional boost with a democratic win.
No. 3: Healthcare
A democratic win means continued healthcare reform, and it will also subsidize health insurance companies.
Here are the three largest U.S. health insurance companies to consider:
Any of the market ETFs like the SPDR S&P 500 ETF Trust (NYSE: SPY), the SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA), or the Invesco QQQ Trust Series 1 (NASDAQ: QQQ) are good options, as well.
You can buy or short sell any of these ETFs, or you can buy calls to go bullish or buy puts to go bearish for maximum profits.
But regardless of who wins...
One of my favorite sectors - microcurrencies - appears primed to continue its rise.
Since this market operates independently of the stock market, not only does it survive volatility... it thrives in it!
In fact, just the other day, my Microcurrency Trader readers had the chance to score a 55.88% return in spite of the uncertainty surrounding our country at this point in time.
I want you to get on board before the next winner by securing your spot in Microcurrency Trader today.
Click right here for more info.
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About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.
Good morning,
I am very interested in learning how to invest. But don't have too much money to invest at the moment. I really need guidance so that my investments bring the most returns. I am more conservative for the time being. Until I can build my finances , I need to start slow.
Any advice or comments to help me will be greatly appreciated.
thank you
S. Lujan
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