Commentary: Paul Ebeling on Wall Street, Investors Extending ‘The Trump Rally’

#PaulEbeling #WallStreet #TrumpRally

$DIA $SPY $QQQ $RUTX

The Director of National Intelligence John Ratcliffe said Sunday it is yet to be decided if there will be a Biden Administration.  He said issues outlined by President Trump’s legal team, headed by Rudy Giuliani must be heard in court. Joe Biden is a candidate not the president-elect.

Last Week’s Action

Stocks turned in a Strong session Friday setting records and closing on the highs.

Jobless claims fell to a post-March low of 712,000, down from 787,000 the prior week. The number of continuing claims fell to 5.52-M Vs 6.089-M. The market rejoiced as the NFPs were good too.

Stimulus talks are ongoing between Senate Majority Leader Mitch McConnell (R-KY) and House Speaker Nancy Pelosi (D_CA). Senator McConnell said that a stimulus bill is “within reach.”  See it happening before Christmas.

The Technicals

Each of the major indices set intraday and closing highs Friday, as the market is convinced of the Y 2021 recovery coupled with a 2nd term for President Trump. The Russell 2000 rose 2.4%, pulling ahead of the S&P 500 (+0.9%), DJIA(+0.8%), and Nasdaq Comp (+0.7%).

This Week’s Outlook

The .DXY is at a 2.5 yr low Monday on expectations of economic aid, while Sterling sank as the UK and the EU continue to work on a trade deal.

Perhaps there will be no-trade deal BREXIT on 31 December when the UK leaves the EU, we wait, we see.

Friday’s jobs data showed NFPs increased by 245,000 last month, the smallest gainer since May but still good.

The recent slowing is a mild concern as it suggests that it may take longer to reverse the full negative hit to the US labor market from the COVID chaos. s given renewed disruption from the 1st and only wave

Talks aimed at delivering fresh coronavirus relief to gathered momentum in the US Congress this week, as a bipartisan group of lawmakers work to put the finishing touches on a $908-B aid/relief/stimulus bill.

A final version of the proposed legislation is expected earlier this wk. At the same time, the Fed is expected to make more adjustments to its QE later this month.

In the current trading environment, the increasing speculation over lower US fiscal and monetary policies provides support for risk assets and weighs on the Buck.

Have a healthy week, Keep the Faith!

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