Is The Market Wrong?
curve ball in December, but the market has been pricing in a Biden win and a split government from Wednesday. With the risk of a contested outcome, is the market’s recent price action wrong?
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We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://financialsource.co
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And so, the big election week and the waiting comes to an end as Joe Biden is called as the next President of the United States. The market didn’t wait until the weekend to price in a Biden victory as was evident by the big moves in risk assets and the US Dollar.
Going into the past week, the idea of either a contested outcome or a split government was seen as a short-term negative for equities and a short-term positive for the US Dollar. However, it took the market a whole hour to price in the negatives and continue in line with reflationary positioning.
President Trump has vowed to fight the election with everything he’s got, and apart from that virus cases continues to surge across Europe and the US. So, with obvious short-term risks on the horizon, has the market been too quick to price in reflationary trades? My answer is no, but we’ll go into that and some potential trading opportunities in this week ahead video.
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Highlights of the video:
00:19 – Current Baseline
04:19 – Baseline expectations for the upcoming risk event
07:10 – Sentiment Shifts & Trade Plan
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If you find these weekly analysis and trade ideas useful, you’ll love Financial Source. There’s a link below were you can learn more about it
https://financialsource.co
----
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://financialsource.co
-----
And so, the big election week and the waiting comes to an end as Joe Biden is called as the next President of the United States. The market didn’t wait until the weekend to price in a Biden victory as was evident by the big moves in risk assets and the US Dollar.
Going into the past week, the idea of either a contested outcome or a split government was seen as a short-term negative for equities and a short-term positive for the US Dollar. However, it took the market a whole hour to price in the negatives and continue in line with reflationary positioning.
President Trump has vowed to fight the election with everything he’s got, and apart from that virus cases continues to surge across Europe and the US. So, with obvious short-term risks on the horizon, has the market been too quick to price in reflationary trades? My answer is no, but we’ll go into that and some potential trading opportunities in this week ahead video.
----
Highlights of the video:
00:19 – Current Baseline
04:19 – Baseline expectations for the upcoming risk event
07:10 – Sentiment Shifts & Trade Plan
----
If you find these weekly analysis and trade ideas useful, you’ll love Financial Source. There’s a link below were you can learn more about it
https://financialsource.co
