As we head into election week, there’s no shortage of potential market volatility — especially with the FOMC meeting closely following on Thursday.
With events stacking up like this, it’s tempting to make big plays, but now’s the time to focus on income trades and keeping your risk in check. This is where having a steady approach really pays off — if markets offer a good entry, great.
But if they don’t, there’s no need to chase it. Let’s look at the stakes.
Historically, the day after the election, the S&P 500 tends to provide some guidance for market direction over the following two to four weeks. If Wednesday’s close is green, it suggests potential bullish momentum, while a red close could hint at more downside.
It’s been that way since 1996, so if that pattern holds, there’s an opportunity here. However, it’s crucial to keep your trades lean and targeted during this period.
When it comes to election night, the biggest concern is whether we’ll see a winner declared. If we get clarity Tuesday night, that’s one less thing for the market to worry about.
But if the outcome drags on — and especially if one side questions the process — we could see some significant sell-offs as uncertainty lingers.
With this in mind, I’m not looking to have too much money exposed until we get past Tuesday’s volatility. Instead, I’ll keep cash ready and lean into income trades and small stabs that make sense.
Income trades let me manage my exposure and capture gains from short-term moves without risking a major position. Think of it like pruning and refining the portfolio each week, lowering cost bases, and locking in profits when the market gives us the opportunity.
Look, we don’t need to let these events throw us off our game. Right now, I’m sitting on cash, patiently waiting for genuine opportunities. This approach allows me to be nimble and avoid getting caught up in any panic swings — I’m here for the long game, not for a one-night trade.
I’ll keep grinding through with my income strategies and reserve the buying power for moments that truly deserve it.
In a week like this, discipline is everything. Keeping our sights on steady gains while leaving room to pivot as things unfold will pay off. If the market provides a clean direction, I’ll deploy more capital — if not, I’ll just keep collecting income, managing positions, and staying ready for the next setup.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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