Flat Friday: US stocks close flat to mixed as market averages fizzle
WASHINGTON – US stocks were flat to mixed on this Flat Friday with a slight downward bias. That was to be expected after a bizarre trading week. First, Election 2020 morphed into a belated Day of the Dead celebration and stocks rallied like there was no tomorrow. But today traders watched market averages fizzle before techs regained a bit of momentum near the 4 p.m. ET closing bell. Those meandering averages closed up (NASDAQ) or down (Dow and S&P 500) only a fraction of a point.
Not with a bang, but a whimper…
After today’s Flat Friday on Wall Street, down a fraction of a point is likely the way Trump supporters feel as they stagger into the weekend. True, most of their candidates down ballot actually won an increased number of seats in state government elections. That guarantees mostly Republican legislatures will once again get to gerrymander state congressional districts, just like the Dems routinely did for decades.
But, like the President, they’re also as mad as hell and they’re not going to take it any more. But what’s the alternative? When no one will defend the President as evidence mounts of massive election fraud on a scale never seen in the US, you wonder if the GOP has really permanently become the Stupid Party even though President Trump showed them how to win, win, win.
The battle of the bans continues next week
Stocks will ebb and flow next week, and market averages may fizzle again. Competing groups may continue to rise and fall depending on which of their sector champions seems to be ahead in the nation’s corrupt and fatally damaged vote counts and recounts. Techs did well Wednesday and Thursday. In particular, social networking stocks plus Apple and Amazon surged ahead with great vigor. Traders likely decided these stocks would be free and clear from Federal government trouble with Joe Biden in the ascendancy.
But today, as President Trump began fighting back forcefully against the Dark Side, and as Facebook and Twitter did their best to boldly ban the President or “fact check” him all day — courtesy of “objective” sources like Snopes clones and the so-called Southern Poverty Law Center — traders and investors had second thoughts about today’s West Coast robber barons and dumped these already pumped up shares.
Maybe they should spend some time fact-checking the continually deranged Mad Hatter-like Keith Olbermann. He’s fulminating and proclaiming vicious Marxist nonsense once again, this time on his own (uncensored) site. He’s wishing all manner of nasty things on Trump and his supporters like the reincarnation of Robespierre. Why did Nurse Ratched release this whack job from Arkham Asylum, anyway? He provides ample evidence for why we should re-institutionalize certifiable idiots once again.
One big winner for investors
Meanwhile, back in the wonderful world of investing, ZeroHedge has identified one group of stocks that’s still really happy with this country’s continuing and often violent chaos. This business fails to observe anything like a Flat Friday.
“After tumbling on Wednesday, amid hopes for a Trump victory in the election and the return of ‘law and order,’ US gunmaker stocks are soaring the last two days as the odds of a Biden victory continue to rise…
“This should not be a total surprise since we have warned for months that Americans across even the most liberal states were panic-hoarding guns and ammo. Weapon background checks surged to record highs, rose 79% year-over-year over the summer amid pandemic fears and violent social unrest gripping major metros.”
On the other hand, Trump’s problems seem to be giving oil and gas stocks the heebie-jeebies. Not to mention those frackers and other enablers of the renewed supply of cheap and abundant fossil fuels that had begun to Make America Great Again. But that was before the Xi-Fauci tag-team canceled the January-February 2020 edition of the Great Trump Rally. Now, even a Flat Friday for these battered shares would be a welcome tonic.
Next week? The political drama continues. And so does our meandering market
We’re pretty much wrapping up earnings season next week, so Mr Market will be starved for actual inspiration. A new, lower Covid-19 stimulus bill might excite stocks should it ever come to pass.
Mitch McConnell swears Pelosi won’t get her whole wish list, and why should she? She nearly lost the House to the GOP as things turn out, and so won’t be able to bluster and threaten as much as she did last week. That won’t keep her from another blackmail attempt, of course.
But her House member’s now nearly razor-thin majority is getting sour on her Wicked Witch of the West act. So anything goes. As market averages fizzle, so, too, may the fortunes of failed Speakers of the House likewise go flat and sour.
Nobody will care, now, for President Trump’s opinion on this legislation. Unless, of course, he manages to pull out a victory from the hideous mess that the Democrats, Xi and G—rg- S—s have made of our once durable democratic republican form of government.
If the Washington stalemate continues to its next potential stage – the Supreme Court, as presided over by the GOP’s latest fake conservative appointee, Chief Justice John Roberts, and perhaps a best and final decision in the House and Senate – we’d expect stocks to deteriorate more.
One big accomplishment: The office of POTUS is poisoned for its next occupant, whomever that might be
The office of the President of the United States (POTUS) is now effectively poisoned for whomever wins, and that’s how the government will likely work for the next 4 years: without a head. That’s what screwing with the Constitution and with fair and honest election seasons will do for you.
Meanwhile, investors will continue to find this market is going to be a day-to-day affair until it isn’t. Market averages will continue to wobble for that reason. So we’d still be pretty cautious about investing accumulated cash right now. It’s probably smarter to wait for some clear bargains to appear on the horizon.
So let’s all forget this crap for now and enjoy a nice weekend. We’ll be inundated with more political garbage next week for sure, so why encourage it during our all-too-brief weekends off.