U.S. equities soared Monday morning after the FBI confirmed
over the weekend it has no new evidence that implicates Hillary Clinton in the ongoing e-mail scandal.
The Dow Jones Industrial Average soared more than 250 points while the S&P 500 and Nasdaq indices each gained more than 1.50
percent. Needless to say, investors are assuming that the FBI's update all but clears the path toward a Clinton victory, which is
considered to be the safer bet for stocks.
Among the top gaining sectors is financials. The Financial Select Sector SPDR Fund (NYSE: XLF) gained more than 2 percent. Technology and energy stocks were also trading
stronger.
Selling Opportunity?
Dennis Dick, co-host of Benzinga's daily PreMarket Prep show, pointed out during Monday's show that investors and managers who
are nervous heading into the election could find Monday's surge as the ideal opportunity to sell into strength.
"Is this not the best selling opportunity that you can get," Dick continued. "You are going to have multiple stocks hitting
52-week highs — a lot of the banks, financials are right near 52-week highs this morning."
Dick added that investors shouldn't be surprised if the markets experience some selling pressure, as more investors decide to
de-risk their portfolio or simply take some profits off the table.
What About Coal?
While the markets are surging on the belief of a Clinton victory, Market Vectors-Coal ETF (NYSE: KOL), an ETF that tracks the Stowe Coal Index, hit a new 52-week high of $13.56 on
Monday.
Clinton famously said, "We are going to put a lot of coal miners and coal companies out of business." Although she later claimed
this quote was taken out of context,
Trump has made it clear he wants coal
companies to thrive.
Listen to the full discussion at 1:10 in the clip below.
PreMarket Prep is a daily trading ideas show that focuses on technical analysis and actionable short term trades. You can listen to
the show live every morning from 8–9 a.m. ET here, or catch the
podcast here.
Image Credit: By Ali Shaker/VOA [Public domain], via Wikimedia Commons
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.