Get Ready for Trading: A High Volatility Week Ahead

Key Takeaways:

• Election Uncertainty: With the presidential race heating up between Trump and Harris, market volatility is expected.

• Fed Rate Speculation: A possible 25-basis point rate cut from the Federal Reserve is on the horizon, influenced by recent economic data, leaving traders eager for Powell’s commentary.

• Earnings Reports Ahead: Key earnings releases from companies like Constellation Energy and DraftKings could drive trading volatility, creating opportunities for savvy traders.

Buckle up-the market is going to be a roller coaster!

Buckle up, folks! It’s another action, packed week for investors as U.S. voters prepare to descend upon the polls in a presidential race tighter than a drum. With the potential consequences ranging from fiscal policy to global trading, everybody is on the edge of their seats. And then there’s the Federal Reserve, ready to cut rates faster than a chef slices tomatoes. 

U.S. Election 

Tuesday is Election Day, and early voting is garnering more buzz than a convention of bees. The two candidates, Republican Donald Trump versus Democrat Kamala Harris, are neck and neck in the races. Already, analysts are murmuring that recent gains in Treasury yields and the dollar indicate a win by Trump. However, it is not time for confetti as yet because polls show neck-and-neck races, which could send traders into a tizzy in case of a Harris victory.

Traders are praying for clarity, as nobody needs a rerun of that interminable contest. Only seven states are truly competitive, and yet Harris seems to have pulled a surprise lead in Iowa, a state Trump won like it was his backyard barbecue the last two elections. Will the tables turn? Stay tuned!

Fed Event

Now, to the Fed, which could serve up a 25-basis point rate cut at its meeting on Thursday. After the chunky 50-bps cut in September, the Fed is all about that slow and steady vibe, but will Chair Jerome Powell spill the beans on what’s next, or will he keep us guessing like a magician at a kids’ party?

The latest nonfarm payrolls report shows that job growth nearly stalled, the result of strikes and weather being party poopers. This has cemented expectations for a more modest rate cut. Morgan Stanley thinks Powell will be cryptic, reminding everyone the Fed is “data dependent,” aka in laymen’s terms, they’ll decide based on the numbers because who doesn’t love a cliffhanger?

Earnings Bonanza

And, of course, just when you thought things couldn’t get much busier, along comes the third-quarter earnings season. Stand by for a flood of results, though most investors will be riveted to their screens as the election unfolds.

Joining the quarterly earnings parade are Palantir and Constellation Energy on Monday; and Builders FirstSource, Ferrari and Super Micro Computer on Tuesday. 

On Wednesday, we’re stocked with Qualcomm, CVS, and Arm Holdings—investors will be extra curious to see if Arm has any updates on its lawsuit against Qualcomm. Then Thursday brings a roster of names including Pinterest, DraftKings, Cloudflare, and Affirm. It’s a trader’s smorgasbord!

Across the Pond: Bank of England

Across the ocean, the Bank of England prepares to cut 25 bps at this meeting. This meeting is the talk of the town with the new budget from Labour, leading everyone’s thoughts on fewer rate cuts next year. The UK borrowing costs are going up. All eyes are on the BoE!

Meanwhile, the Reserve Bank of Australia probably keeps rates unchanged. Looks like it’s a play-it-safe day down under!

Oil: The Wild Card

Last but not least, oil prices are in for some wild ride, stirred up both by geopolitical theatrics and supply concerns. It jumped on Friday amidst reports that Iran is working on an attack on Israel in retaliation. Just another Tuesday in the Middle East!

OPEC+ had been considering a delay to a planned production increase in order to calm the waters. After a see-saw week of ups and downs, Brent prices slipped around 4%, while U.S. crude futures fell around 3%.

So, what’s the bottom line? Buckle up, as this week will be a whirlwind of political drama, Fed meetings, and earnings reports that could leave many of us gasping for air. Try keeping your wits about you and your sense of humor ready, as it will be quite a ride! 

Do You Want to Dive into Fantasy Trading during the Big News!

News trading is the high-stakes game, and no broker or proprietary trading firm will let you trade during those precious minutes. Here at BullRush, we love the news traders, even invented the first ever news trading competition! These competitions would run in parallel to major economic events and often would last only an hour, making it super intense and electrifying.

Why Compete? News Trading Competitions let you:

• Trade under real conditions of actual market events.
• Show your skills in reacting to abrupt market turns and turning volatility to your benefit.
• Compete against others in fast action, news-driven scenarios.

Get ready for a month flush with high-volatility action in November, and be prepared for BullRush’s “Trade The News” competitions to help you turn that excitement into instant rewards! Participate in high-stakes trading tournaments surrounding events like the release of announcements on CPI, Non-Farm Payroll, and PMI. 

There is nothing quite like an adrenaline rush in trading during high-impact economic events as you witness your trading strategies go live. It’s fast, it’s intense, and that’s where traders can turn moments into BIG rewards.

Now, when the market is hot, it is time to do some fantasy trading!