141,023,367 votes have been counted so far, and we’re still waiting for major states like Georgia and Arizona to confirm a winner.

I swear – I’m checking the live map of the electoral college like I’m watching a football game and my team is going for it on fourth and three at the two-minute warning.

And while we wait for this monumental announcement declaring who will be running the country for the next four years, I think we should get some profit plans in place.

It’s no surprise that the market will be influenced by the result of the election.

That’s why I sifted through and narrowed down the biggest moneymaking stocks to play once the new President of the United States has been announced…

Profit on Short-Term Plays No Matter the Outcome of the Election

With mail-in and early votes still being counted, at this stage, it could be hours, days, even weeks before we know anything more than we know now.

This indecision creates volatility in the market – we’re currently seeing the market extend gains, but predicting direction is risky.

Many experienced traders are sitting on the sidelines until a winner is declared.

But once a winner is decided and the indecision wanes, one thing is certain… a solid direction will emerge.

As I wrote last week, patterns show that if a Republican incumbent is re-elected, the market will rise into the end of the year, and on the flip side, if a Republican incumbent loses, historically the market drops during the same time.

So, a straight-forward play is to go bullish if Republicans win and bearish if Democrats win.

Over the long haul, the sectors I have listed below will benefit depending upon which candidate wins – and this is where you should look to place your money.

If the Republican incumbent wins, expect the following sectors to rise:

1. Oil/Gas

The simplest way to trade this sector is with the United States Oil ETF (NYSE: USO). Simply buy and hold this stock that tracks the price of crude oil. Supercharge your returns by selling 30-day covered calls.

You can also trade the sector with Select Sector SPDR Trust Energy ETF (NYSE: XLE).

Increase your returns by trading the most bullish stocks in the sector.

The top performing stocks in the oil and gas sector are:

    • Halliburton Company (NYSE: HAL)
    • Baker Hughes Co (NYSE: BKR)

2. Financials

Trade the entire sector with the Select Sector SPDR Trust Financial ETF (NYSE: XLF).Supercharge your returns with these top two performers in the sector:

  • Invesco Limited (NYSE: IVZ)
  • Discover Financial Services (NYSE: DFS)

3. Aerospace and Defense

Republican presidents tend to have a strong national defense platform.

The following defense stocks will be smart buys if there is a re-election:

  • Lockheed Martin Corporation (NYSE: LMT)
  • Boeing Co (NYSE: BA)
  • Northrop Grumman Corporation (NYSE: NOC)

If the Democratic candidate win, expect the following sectors to rise:

1. Gun Stocks (Short Term Play)

When a democrat unseats a republican president, gun makers typically benefit due to potential regulations.

Consider the following two gun makers:

  • Sturm Ruger & Company Inc (NYSE: RGR)
  • Smith & Wesson Brands Inc (NASDAQ: SWBI)

2. Renewable Energy

Renewable energy is a very hot sector, and one we touched on back on August 14, 2020.

Here are six great renewable energy plays for 2021 which should receive an additional boost with a democratic win.

  • NextEra Energy (NYSE: NEE)
  • Vestas Wind Systems (OTC: VWDRY)
  • Renewable Energy Group (NASDAQ: REGI)
  • Invesco Solar ETF (NYSE: TAN)
  • iShares Global Clean Energy ETF (NASDAQ: ICLN)
  • Invesco Wilderhill Clean Energy ETF (NYSE: PBW)

3. Healthcare

A democratic win means continued healthcare reform and will subsidize health insurance companies.

Here are the three largest U.S. health insurance companies to consider:

  • UnitedHealth Group Inc (NYSE: UNH)
  • Cigna Corp (NYSE: CI)
  • Humana Inc (NYSE: HUM)

Any of the market ETFs like the SPDR S&P 500 ETF Trust (NYSE: SPY), the SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA), or the Invesco QQQ Trust (NASD: QQQ) are good options, as well.

You can buy or short sell any of these ETFs, or you can buy calls to go bullish or buy puts to go bearish for maximum profits.

Talk soon,

— Tom Gentile

Source: Money Morning