InvestmentMAGE's Blog : Trick or Treat?

BOOooooooooooooooooooooooooooooooooooooooooooooooooo

We are rapidly approaching the (to me) scariest day of the year.

You know what I'm alluding to...

Ritual gatherings in multiple locations all over the USA.

Participants pretending to be someone they are not.

Strangers knocking on your door asking for favors.

You may spot a witch or perhaps someone dressed up in a nazi uniform

Of course you have realized by now,

I'm referring to...

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the midterm elections.

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If you are interested in the Political ramifications look here:

www.ft.com/midtermmap

or here:

http://fivethirtyeight.blogs.nytimes.com/

or even here:

http://www.intrade.com/

I would like to discuss the near to mid term stock market ramifications.

First to paraphrase the stock traders almanac:

"bullishness seems to occur five days before and three days after midterm elections"

(This year Tuesday, October 26 to Friday, November 5)

"An impressive 2.7% has been the average gain during the eight trading days surrounding midterm election days since 1934"

Although the past is prologue, there is more involved here than history.*

This year has a wildcard thrown in.

What is unique this year?

On Wednesday, November 3 the Federal Open Market Committee (FOMC) will clarify (some what) the quantitative easing or more commonly called QE2.

I'm more of an investor than a trader (you can see that most of my picks are for up to a year), I think, based on history, it's time to start buying.

We are also beginning the third (and usually best) year of the Presidential Cycle.

Anticipate volatility on Wednesday Nov 3

Recommendation:

Buy on dips.

Sell Netflix NFLX

Sell Berkshire Hathaway BRK.A, BRK.B

Good Trading,

MAGE

Remember, there are many investment Gurus, however there is only one InvestmentMAGE







*If past history was all there was to the game, the richest people would be librarians. Warren Buffett