Hey Folks, now that the actual US Presidential election is behind us (or is it?) markets an begin to play out a go-forward plan where winners and losers can begin to sort themselves out. Get me take on the current market price action below;
WEEKLY SOUNDBITES:
• Stocks posted their largest weekly rally since April, despite the lack of a clear winner emerging from Tuesday’s presidential election as vote-counting continued in several pivotal states. With former Vice President Joe Biden appearing to have the clearest path to victory and Republicans seeming likely to retain control of the Senate, investors began to anticipate a Goldilocks scenario of additional fiscal stimulus but more limited tax increases than under a “blue wave” Democratic sweep. The tech-heavy Nasdaq Composite Index and the small-cap Russell 2000 Index performed even better than the broad large-cap S&P 500 Index.
• Federal Reserve policymakers met on Wednesday and Thursday but announced no changes to monetary policy… Fed Chair Jerome “Power Ranger Boom Boom” Powell said they still have monetary policy tools it can deploy to boost the economy if needed and that policymakers discussed the outlook for the central bank’s quantitative easing (QE) programs. Powell left open the possibility that the Fed could expand its purchases of long-term Treasuries…meanwhile, the Bank of England (BOE) increased its bond-buying program by a larger-than-expected GBP 150 billion to GBP 895 billion
• The government’s October employment report, released on Friday, showed that the economy added a better-than-expected 638,000 jobs last month, driving the unemployment rate down to 6.9% from 7.9% in September. However, COVID-19, the disease caused by the coronavirus, has surged in many parts of the country, with more than 100,000 new daily cases reported nationwide for the first time and hospitalizations rising. This widely anticipated fall wave of the pandemic caused some states and municipalities to consider adding new restrictions on consumer businesses, threatening to slow the improvement in the labor market.
Enjoy this Week’s Weekly Round-Up;
Don’t Be A Rat Brain Trader – Be the Red Stripe Zebra !!
Trade Smart !
hpb
