In a seemingly massive win for the Biden Campaign, Emily Murphy at the GSA (General Services Administration), confirmed that the Trump Administration is ready to move forward with the peaceful transition of power process, in the accordance with the law. I don't know whether or not this is a move to escape the legal nightmare Trump is living each day, or whether he has a final card up his sleeve to somehow hold on to the presidency. More likely than not, Trump is moving on with his life, at least for now. What I found most interesting about the news, though, was the fact that futures spiked almost immediately after. Since when is a Biden victory good for stocks?
- If memory serves, Biden was going to raise corporate taxes on millions of small businesses at the worst possible time.
- Trump said if Biden won, we'd see the worst depression in history because he would lock down the nation, and cause another market crash.
- Biden was going to kill big oil.
- Biden was going to face stark opposition on any stimulus proposal he brought forward.
- Some experts have said they're expecting stimulus in the realm of $700 Billion; that's not quite $2.2 Trillion.
Yet, (global) markets spike on the news that Trump is essentially conceding to Biden. I guess when you can print GDP, who needs an economy?
*Takes deep breath*
Let's see what's happening over on the SPY:
We gapped up on the open to around 360.21, off the back of the GSA news, and we're sitting just above the Megaphone trendline which is now sitting around 357.50. We're also kissing the upper trendline of the triangle/weak (volume) bullish pennant around 361.60. Finally, we're approaching the bottom of the ascending channel formed over the past 7 months or so, now sitting around 362.50. We're outside the megaphone right now, and if we break above for the first time in 9 years, on the monthly, we could see a biblical short squeeze. Just a reminder folks, the end of the month is next Monday. As I said, until we see a clean break of the megaphone on the monthly, I ain't going anywhere...
Stay tuned for live updates throughout the day, and thank you for your time today guys. If you enjoyed today's analysis, please hit the Like button and subscribe to our profile. The information and analysis shared in this post is not financial advice. Always conduct your own analysis and research. Cheers, Michael.