WASHINGTON – It’s almost dinnertime Sunday, and Wall Street futures are essentially flat. Of course, futures indications tend to be misleading until roughly 10:30 each evening before the next trading day. That’s when futures fans begin to pick up on the following day’s likely trading pulse. Numbers can start changing quickly at that point. My guess is that right now, traders and investors remain completely flummoxed mostly because of the questions surrounding last week’s disastrously flawed presidential election results. Upcoming Election 2020 lawsuits make this week’s action in US stocks utterly unpredictable.
One writer’s thoughts on upcoming action in US stocks
The Wall Street Journal’s James Mackintosh took a stab at trying to interpret the indecipherable in the following clip, offered via Fox Business.
“Markets moved after the election in exactly the direction they should. As the polls closed, there was a Biden surge, at least in the minds of traders, who had been too trusting of the pollsters. The 10-year Treasury yield jumped to 0.94%, the highest since the panic in March. S&P 500 futures jumped, and Nasdaq futures didn’t. The bet was that a Democrat sweep of the White House and Congress would deliver more spending and more borrowing, pushing up Treasury yields and helping old-line industrial and consumer stocks, while creating an alternative to technology stocks for those seeking growth.
“As it became clear that Florida had stuck with Mr. Trump and the Democrat “blue wave” was merely a ripple, traders reversed course. Treasury yields fell sharply, while Nasdaq futures soared 4.8%. There would be no fiscal splurge, so no help for traditional economically-sensitive stocks, while tech remained the only growth option, with the benefit of no hostile Congress.”
More on likely market chaos
“Markets then swung once again, with Treasury yields falling to 0.77% and stock futures giving up all their gains as a long wait for a result came into prospect. Donald Trump’s premature claim of victory added to the downward pressure, encouraging worries about a disputed result (the Bush v Gore Supreme Court fight in 2000 was accompanied by falling stocks, bond yields and the dollar).”
So it goes. Nobody knows what they’re doing, except for the big city Democrat machine crooks that arguably stole last week’s election from President Trump by the boldest ever coordinated vote manipulation this country has ever seen. The resulting Election 2020 lawsuits from the Trump camp will launch Monday. But we’ll have to see what that does to the major market averages before we’ll place bets on this market, long or short. You can’t outguess this mess.
The media’s part in those Election 2020 lawsuits
BTW, note Mackintosh’s snarky aside, re: “Donald Trump’s premature claim of victory” last week. Nothing was more premature than Joe Biden’s virtual acceptance speech this weekend, declaring himself as the president-elect. Now that was premature.
The media, full of themselves as ever, giddily proclaimed Biden’s alleged victory. But I don’t recall seeing anywhere in the Constitution where the media is empowered to call a presidential election and declare the official winner. So who’s premature? Like Fox News, the WSJ has clearly moved to the Dark Side this month.
What we’ll see this week is any number of Trump / GOP suits questioning the eminently questionable results of this year’s election, which was clearly gamed by the Democrats and leftists on an epic scale. Whether they’ll be able to run out the clock on this massive fraud, or if Congress is willing to do the legal but unthinkable – ruling out the fraudulent votes created by big-city Democrat machines and giving Trump the victory – remains to be seen.
We’re on treacherous ground here, and it’s all going to affect stocks, perhaps violently.
Some serious caution is still the advisable course of action this week. At least until we get some clarity on those Election 2020 lawsuits. But right now, both the media and the Biden people need to quit with the triumphalism. They’ve all been caught red-handed in a massive vote manipulation scheme. Whether the remaining constitutionalists in Washington are willing to slam down those responsible for this fraud, or if they choose to chicken out rather than face the violence that will follow remains to be seen.
But in the meantime, as this battle vacillates back and forth, so, too, will Mr Market. We all need to be careful, or our portfolios could become the unwitting victims of a potentially epic national tragedy.
So let’s try to stay calm this week while keeping quart bottles of Maalox at the ready.
– Headline image: Trump v. Biden. Election 2020 lawsuits begin to fly. The extended battle and resulting court cases will likely cause heartburn for US traders and investors. Cartoon by Garrison, reproduced with permission and by arrangement with grrrgraphics. Slightly re-sized to fit CDN format.