FX Evolution: You Won’t Believe What Tom Lee Thinks Will Happen Next!

Markets have recovered from some of their August and early September selloff, and once again pushed to make new all-time highs. Markets view the Fed’s rate cut as bullish, at least going into the cut.

However, the back end of September is historically the worst two-week period of the year. And, at least so far, markets have a 100% track record for a negative September when the first four days of the month are down.

That trend may not hold. But if it does, it suggests that stocks may have some further – and steep – declines over the coming few weeks.

And the market’s shift in the first two weeks of September indicate that markets are more likely to range trade. That’s the view of Tom Lee, the analyst who has had some accurate readings on recent market moves.

Rather than a bull market or bear, it’s more of a kangaroo market. A market that bounces up and down without a strong direction either way.

Plus, as the election nears, investors may want to hold back until there’s some certainty.

So, looking at all these factors, signals point to markets remaining volatile for the next few weeks. The good news? After the election, markets should see a year-end rally.

That gives investors and traders some short-term trading opportunities both long and short. And for a chance for an uptrend to emerge into year-end.

To view the full analysis, click here.