Hey Folks, next week promises to be a very interesting week for the financial markets as we will finally get some insight into who will win the US Presidential Elections. It would take weeks to sort out all the fuss if the election is close or it could be over the next day if a clear winner emerges. Either way there will not doubt be a number of contested ballots and lawsuits galore. For us we need to watch for extreme bursts of Volatility markets try to establish a price direction. Enjoy this week’s update and get my take below;
WEEKLY SOUND BITES;
• US and European equities suffered their worst weekly declines since March, as the resurgence in the coronavirus and election uncertainty weighed on sentiment. With the narrow exception of the S&P 500 Index, the major benchmarks fell into correction territory on Friday morning, or down over 10% from recent highs… while the CBOE Volatility Index (VIX) reached its highest level since early June…With concerns over steeply rising Covid case counts in Europe and the U.S. and US Fiscal Stimulus hopes on life support market sentiment weighed heavily on price action throughout the week… data showed COVID-19 hospitalizations had risen at least 10% in the past week in 32 states and the nation’s capital while all across Europe Government officials were announcing new lock down measures…
• Stocks snapped their losing streak on Thursday, seemingly helped by news that U.S. GDP had increased at an annualized rate of 33.1% in Q3, above consensus expectations of around 31% and investors also seemed encouraged by weekly jobless claims, which came in lower than forecast reaching a new pandemic low…Continuing claims were more in line with expectations but continued to fall sharply, from 8.5 million to 7.8 million…
• Thursday evening brought the release of reports from tech and internet giants Apple, Amazon, Alphabet (parent of Google), and Facebook. Each beat consensus earnings and revenue estimates, but all except Alphabet fell in trading Friday. Apple weighed on the benchmarks as investors appeared disappointed by iPhone sales…keep in mind that a sustainable US recovery cannot occur until the service sector is fully open because it accounts for roughly 60% of the US GDP and over 85% of the employed workforce…the current employment levels in the service sector are still about 10 million below the pre-pandemic levels…
Enjoy This Week’s Weekly Round-Up;
Don’t Be A Rat Brain Trader – Be the Red Stripe Zebra !!
Trade Smart !
hpb
