RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Now is the time to consider using equity futures as an insurance policy against a downside correction. Afterall what better time than now, while the market is at all time highs and just two months from the US Presidential Election. This is a pivotal election. Do not wait until after the election…

I realize that for at least the last eight years or so it has NOT been necessary to hedge your portfolio as the market just continues to move higher. Due to the coronavirus pandemic we had the shortest-lived bear market in history. New highs almost daily. Afterall, you cannot fight the Fed, and the virus seems to be receding and the rally marches on. So why would I even suggest shorting futures to hedge your long-time investments? I’m calling it the “election trade strategy”. When was the last time an incumbent was re-elected during or shortly after a recession? Odds are very high, according to history, that Donald Trump does not get re-elected due to the recession. Policy changes on taxation and regulations put the odds higher of a sharp selloff from these frothy levels.

You purchase insurance on your life, your home, your automobile and everything else of VALUE. Why wouldn’t you purchase E-Mini S&P puts ahead this pivotal election?

If you’re interested in this type of strategy or opening a trading account, give me a call or email fcholly@rjofutures.com

To learn more about futures and how to comprehend and understand analysis, please download our free Techinical Analysis Trading guide.

800-826-4124312-373-5301Series 3 Licensed

Frank J. Cholly

Senior Market Strategist
Frank brings his clients more than twenty-six years of commodity futures experience. He was a member at the Chicago Board of Trade for 10 years where he filled orders in the grain and financial pits. Frank was also a Lind-Waldock's floor manager for ten years and later joined on as a commodities broker.
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