The market is likely to remain in wait and see mode until Tuesday’s US mid term election results are known. It is likely that if the results are in line with current predictions the US market will rally a little before the focus returns to the major concerns such as rising rates, and a US economy that is very close to the top of the cycle. The year end effect might well start to take hold towards the end of the month, but in the meantime there is plenty to keep the ongoing two way volatility in place. After my trade in Legal and General last week the shares moved further ahead and are now a little too high for me given the position of the broader market. The top of my list now is Centrica which continues to find support around the £1.43/£1.44 level. I am also watching GlaxoSmithkline and Reckitt Benckiser, both of which have reported in recent weeks. One of my trading rules is never to hold a stock into its results. Given that results provide fresh information for the market to digest you can never predict what might happen on the day and the market has a habit of selling a stock off first thing before the numbers are analysed and the stock then regains its losses as the numbers are fully digested. Whilst there can be significant gains if you hold a stock and it presents strong numbers it isn’t in my view worth the risk, especially given the number of companies that are disappointing at the moment. With a lot of UK earnings still to be reported there will be a number of companies that I have to avoid this month. Centrica report on the 22nd November which leaves me a window of another week or so to trade them.