Post-Election Breakouts to Trade

iShares Silver Trust Exchange Traded Fund (SLV):

The price of silver moves similar to that of its big yellow sister, gold. While the charts look the same silver is highly volatile and can supercharge your portfolio when metals rally.

United States Oil Fund (USO):

Crude oil has been correcting for a couple months also and still has a lot of work to do before a new uptrend to be triggered. Currently oil is trading in the middle of its trading range, but once the price breaks above $93 per barrel a good investment fund would be USO.

iShares Russell 2000 Small Cap Index (IWM):

Small-cap stocks typically lead the broad market in both directions. They are the first to rally and the first to rollover and sell off. The major indexes including the Dow Jones Industrial Average and Standard & Poor's 500 plus the New York Stock Exchange have not formed clean chart patterns, which is why my focus is on the Russell 2000.

Small-cap stocks are now showing a rising relative strength compared to the S&P 500 large-cap stocks and this is very bullish for stocks in general. The best way to trade this index is through the exchange traded funds IWM and Direxion Daily Small Cap Bull 3X Shares (TNA).

Post-Election Trading Breakout Summary:

In short, history shows that equities tend to rally after an election. For a detailed outlook of how to trade stocks and indexes during the election cycles be sure to read my report "The Election Cycle - What to Expect in Stocks & Bond Prices".

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Chris Vermeulen is founder of the popular trading sites www.thegoldandoilguy.com and www.ActiveTradingPartners.com. There he shares his highly successful, low-risk trading method. Since 2001, Chris has been a leader in teaching others to skillfully trade in gold, silver, oil and stocks in both bull and bear markets.

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