Well, as they say: that’s that! The GOP has re-captured the Presidency, the Senate, and perhaps the House (it’ll take longer for those results).
Of course, it isn’t like this wasn’t telegraphed to us all in advance.
Here on Slope, we’ve talked a number of times about what financial instruments would be moved the most by a Trump victory. If SpaceX was public, it would be blasting sky-high right now. It isn’t, but Elon’s other mega-company, Tesla, certainly is, up about $30 (or more than 10%).
Truth Social is up as well, but even now the market is realizing that Truth Social truly sucks as a business, and its appeal as a meme stock is going to fade rapidly. In spite of all of Trump’s power, I wouldn’t be surprised to see this sucker fall hard in the weeks and months to come.
The predictive markets emerged victorious, since they clearly pointed to the winner. Hours before the result, it became clear what the outcome would be.
The GOP sweep has been particularly good for small caps, which will join the Lifetime Highs party today after having been left out in the cold for literally years.
In contrast to all these rallying markets, precious metals are getting killed because the US Dollar is so strong. As of this writing, the front month of Gold is down $75.
Silver – – which mercifully I had NO position in, since I didn’t want to risk it through such a huge binary event – – is getting pummeled a full 5%. The inverted H&S pattern is wrecked now, with prices well below the neckline, so I’m adopting a wait-and-see on this one. I think precious metals will eventually be a bargain price again, but it might take a little time.
I am in decent spirits now, because I very deliberately got quite “light“, and the one earnings event that transpired, NVO, isn’t a problem.
Let me leave you with one last chart to ponder. Yes, the market is up huge. Yes, it looks like the bulls have years of gains to come. But…….don’t neglect this trendline on the /ES. We are at lifetime highs at this very moment, but………..just don’t ignore it.
Thanks for being part of Slope, and thanks for keeping things civil. Now that the election is behind us, I think it clears things up quite a lot.
