In the span of merely hours, during one overnight session, we’ve experienced
(a) the passage of a $2.2 trillion stimulus bill (which, paradoxically, means no bill will pass)
(b) the news that the American POTUS and his most recent wife have Covid
(c) the final monthly jobs reports prior to the election which, as I’m typing this, isn’t out yet (a new post won’t be up until well after this report, so its effects can’t be reflected here).
The biggest news is “B“, of course, and frankly its effects aren’t that staggering. Yes, the VIX spiked, but it has already lost half that punch:
The ES is down, but it is simply back to where it was two mornings ago.
The NQ is precisely the same.
The only “unfettered” market appears to be FOREX, which Powell isn’t controlling, and in this instance, the US dollar has been getting hit hard, with a rather well-formed pattern in the USD/JPY:
Thus generally pushing gold up over the course of this week, although as I’m typing this it is down a little:
The year 2020 is seriously like a first novel which the editor has to keep sending back to the author since the twists and turns are simply implausible. The stunning thing is that there’s still a full 25% of this bewildering year to go, and the next 34 days are going to be unchecked pandemonium.
UPDATE: The unemployment rate fell to 7.9%, and the report overall was a little better than expected. There’s no big change in the markets after this report tumbled out.
