Todd Gordon joined Benzinga's PreMarket Prep on Monday morning to discuss the possible aftermath of Tuesday's U.S. presidential election between Donald Trump and Kamala Harris.
Main Takeaways: Gordon foresees a possible sell-off in the immediate aftermath of Tuesday's election, citing technical factors.
"I think regardless, the way the market's acting, the odds are some kind of pullback, either relief—just profit taking into whatever political combination unfolds—or if there's uncertainty and we don't have a president... I think there's potentially a sell-off coming," Gordon said.
Still, Gordon sees a long-term upside in the SPDR S&P 500 ETF Trust (NYSE:SPY).
"Longer-term, I am very bullish on this market. I like where earnings are, I like where rates are, I like where the yield curve is, we've just got to get through this insane political environment."
Gordon anticipates that a Trump win could lead to a hawkish Federal Reserve decision on Thursday.
"Let's say Trump comes in, he's viewed to be pretty inflationary because he's a protectionist, he wants onshoring... maybe the Fed can't be as dovish as they want to be."
Markets Move Monday: Markets reacted on Monday morning to encouraging polling for Harris over the weekend.
Pollster Ann Selzer's Iowa poll showed Harris taking a shock lead in the Hawkeye state. Selzer's polls have been an uncanny predictor of electoral success since 2008. The final New York Times-Siena poll released Sunday also showed positive signs for Harris. The two polls are among the highest rated on 538.
Prediction markets moved accordingly—Harris gained 10% back on Trump on Polymarket and also pulled closer on Kalshi.
The solar-focused Invesco Solar ETF (NYSE:TAN) jumped over 4% midday on Monday. Shares of First Solar Inc (NASDAQ:FSLR) traded up over 6% at the time of writing.
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Image created using artificial intelligence via Midjourney.