Hey everybody, I hope everyone is having a great week so far and welcome to another edition of the Magnelibra Markets Podcast. Today’s episode #55 is entitled “Markets Love the Trump Landslide”
Quick Disclaimer: The following podcast is for educational purposes only. This is not a solicitation to buy or sell commodity futures or options. The risk of trading securities, futures and options can be substantial and may not be appropriate for all listeners.
Alright well it was a massive defeat for the Democrats and a resounding victory for the Trump MAGA party. Trump is on pace to win over 82 million votes adding over 8 million to his totals from 2020! This really isn’t a surprise to me as anyone watching the rallies, anyone paying attention to the economy, to the actual people, to everything but main stream media, could tell the majority of Americans were fed up with the left wing rhetoric. This isn’t a political bias, this is an obvious observation of general America. This has nothing to do with race, with gender, with anything other than the fact that the general populace in this country wants to feel secure, wants protection at our borders, want an end to endless wars, want prosperity and opportunity and its obvious with the voting results that America chose Trump as the best candidate. In fact we don’t watch CNN but listen to this excellent summation from Scott Jennings, CNNs Senior Political Commentator as to why Trump won the election:
“Its the revenge of just the regular old working class American, they anonymous American, they aren’t garbage, they aren’t Nazis, they are just regular people who go to work everyday, just trying to make a better life for their kids” - Scott Jennings CNN
Here is the link to the commentary its a must watch for those that don’t understand the outcome of this election, Jennings on why Trump Won
That pretty much sums it up. Alright so it looks as if the Republicans have the Presidency, the Senate and most likely the House and honestly there will be no excuses not to succeed here. The markets seem to have loved the outcome as equities are much higher up over 2% plus with the R2k futures leading the way up 5% on the day and 7.5% this week so far, massive move indeed:
The US bond markets and the metals markets do not seem to like this outcome as US bond yields are way up with the US govt 30Y +18bp on the day with an auction rolling out shortly:
Gold hitting major support here at $2678 area:
Silver well off the highs now and down 4% on the week:
Remember the FOMC is on tap tomorrow as well where we expect another 25bp cut! For those that can’t fathom as to why the FOMC is cutting, well deficits for one and of course this massive deferred asset that they continue to accumulate:
As far as technical's, well the volatility in the markets has led to a full retrace down and up of the range in the Nasdaq futures and QQQ:
The US Dollar is +1.6% on the day and the Euro Dec. Futures getting pounded -1.75% on the day:
Bitcoin pushed to new ATHs but continues to trade around the upper band range that we have highlighted for quite some time, currently $74.5k +8.5% on the week:
Ok that is it guys, we leave you with yesterday’s settlements and MEGA8 Data, the hedge we have on for that basket is the QQQ 498C short 5 there expires Friday, but the MEGA8s continue to press into the highs, so let’s see how the day shakes out:
As far as yesterday’s settlements:
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