A “Red Wave” in November Means More Tax Cuts for Americans

A “Red Wave” in November Means More Tax Cuts for Americans

A “Red Wave” in November Means More Tax Cuts for Americans

$DIA, $SPY, $QQQ, $RUTX, $VXX

  • A “Red Wave” in the November midterm elections means “tax cuts 2.0”
  • GOP voter enthusiasm is powered by support for Supreme Court nominee Brett Kavanaugh

Financial stocks are rallying for a 2nd day running as 10-year T-Note yields top 3.20%, and analysts say underperforming bank shares may be ready to gain off low expectations into Q-3 earnings season.

US Treasuries Yield Check

  • 2-yr: +1 bpt at 2.87%
  • 5-yr: +3 bpts at 3.05%
  • 10-yr: +4 bpts at 3.20%
  • 30-yr: +4 bpts to 3.36%

Financials make up the best performing sector in the S&P 500 today.

The KBW Bank Index rose as much as 1.8%, led by some of the country’s biggest lenders, including Bank of America Corp., Wells Fargo & Co., and JPMorgan Chase & Co.

On 12 October, JPMorgan will kick off quarterly earnings season for banks; Citigroup Inc. and Wells Fargo also report that day, while BofA, Goldman Sachs Group Inc. and Morgan Stanley report the following week.

We are expecting solid results given recent under-performance, we think the financials can catch a bid and make up some lost ground this Quarter.

Earlier this week, Goldman said big-bank stocks were at an attractive entry point after underperforming the broader market, and as four of seven covered banks were due to beat estimates.

Investors may also be relieved that the Democrats’ chances of capturing the Senate look to have faded recently, concerns about taxes.

Thursday, it was reported that Top Republicans say they are seeing a widespread surge in GOP voter enthusiasm, powered by support for Supreme Court nominee Brett Kavanaugh.

President Trump’s job rating is poling at 50%, something Barack Hussein Obama did not even dream about ever.

Recent University of Michigan (MSI) survey data show that a months-long trend toward negative thinking about government economic policy may have started to reverse in September.

Thursday, the major US stock market indexes finished at: DJIA -200.91 at 26627.48, NAS Comp -145.57 at 7879.50, S&P 500 -23.90 at 2901.45

Volume: Trade on the NYSE came in at 797-M/shares exchanged

  • NAS Comp +14.1% YTD
  • S&P 500 +8.5% YTD
  • DJIA +7.7% YTD
  • Russell 2000 +7.3% YTD

HeffX-LTNs’ US Major Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
4 October 2018 QQQ 182.04 Neutral (0.08) 180.66 183.17
4 October 2018 DIA 266.27 Very Bullish (0.55) 267.55 269.29
4 October 2018 SPY 290.15 Bullish (0.38) 290.88 293.58

Stay tuned…

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

You must be logged in to post comments :  
CONNECT WITH