Barely one week from the US presidential election, Barack Obama is clear favourite to win the White House. Rick Pendergraft says the stock market will get a post-election lift, regardless of the victor. The end of election uncertainty, combined with oversold markets and over-the-top negative sentiment, should spark a late-year rally.

This taken from Investor’s Daily Edge:

I still think we are close or at a short-term bottom. The sentiment is so over the top negative, I don’t see much room left to the downside. Those that have been thinking about selling have to have pulled the trigger already, right? If they haven’t, I would like to know what they are waiting on.

There are several other factors as to why I think we are at or near that elusive bottom. I was presented with another piece of ammunition just this past week. Some of you long-term IDE subscribers may remember a gentleman by the name of Richard Smith. He wrote a few articles for IDE in the first few months of publication. Richard stopped by our office the other day to show us some of his recent work.

One of the things that Richard showed me was some work he is doing with seasonaltrader.com. These are trades that are strictly based on the calendar, all other information is irrelevant. Richard punched in a seasonal trade on the Dow for a long position being held from October 26- January 1. This trade was profitable 95 percent of the time for the last 60 plus years.

When I add this information to the extreme bearish readings on the sentiment indicators and the extreme oversold readings on the indexes, I keep adding ammunition to the bullish case. It might not be a long-term bottom, but I certainly think that after the election we could see a nice two or three month rally. Regardless of who wins the election, the uncertainty of the election itself will be removed.

Source: Uh Oh, The Fed Is Going To Try To Help The Market Again