Voters repudiated Trump’s vision of America, with special emphasis on the cost of living, military adventurism, authoritarianism, and corruption.

There will certainly be winners and losers. But, it will take a while to sort it out, as not all Democratic initiatives will be advanced or passed. Trump has promised to veto many of them. And, the Dems are neither unified nor beloved. If they don’t accomplish any more than the Republicans, they’ll be turned out just as quickly.

Meanwhile, the initial overnight downturn has reversed and futures are up nicely after coming up short of our SMA200 target overnight.

continued for members…

It would be a mistake to miss the opportunity to tag the SMA200 while it’s within reach. Whether it gets bounced off of or dropped though will depend on many things – some of which Congress will be able to influence, and some of which they won’t: inflation, interest rates, the Iran war, tariffs and Fed operations to name a few.

The first big test for the markets is whether the 10Y can hold its trend line.

And, of course, we’ll continue to keep a close eye on oil. Allowing it to drop through the most recent TL of support would be a nice gesture by the Iranians…  Will Trump still ramp up the bombing campaign?

Stay tuned…