So much pent up drama across the nation with the blue wave vs the red wave but it looks like the green wave won the midterm elections, the money!
It was no secret on Wall St. that the Democrats would win control of the House of Representatives and the Republicans would keep control of the Senate.
We have been talking about the outcome being baked into the markets over the past month in our Game Plan Sunday Sessions. Both parties walked away with some victories and so did Wall St… the green wave.
Realtime, as the results were funneling in, I was hovering over the currency markets to see how the world would react to the midterm results.
Everything was bullish except the US dollar, which was a confirmation the world expected the results to be a positive move for the money.
After the midterm election were decided, the stock market was poppin bottles and living its best life as if it didn’t damn near crash on us about a week ago.
Shaking off Octobers massacre, the Dow Jones ran up 545 points while the S&P 500 gained 58 points and the Nasdaq popped up 194 points on midterm results.
Wall St. is quite happy about a gridlocked congress. It’s probably because they believe it will cool the tension between Trump and China which would bring normality back into the money world.
So now that the Midterm Election is over, we should see the volatility begin to relieve and the bull train may slowly pick back up through the holidays, to end the year on a positive note after October’s catastrophe.
One key area that should benefit from a gridlocked congress would be Infrastructure stocks. This is one area that both parties will more than likely work together to get a deal done. Companies like AECOM, PWR, GVA, VMC, MLM, and ASTE will benefit.
Healthcare is also surging on the gridlock as repeal of Obamacare will be a no go for the next two years. HCA, UHS, THC, and MOH are key stocks of focus for healthcare exposure.
Even weed stocks started to pop off after news of Trump asking Jeff Sessions to resign. Legalization of marijuana has its best chance to get passed without Sessions on deck. Check out our WEED AND MONEY article for more insight.
Make no mistakes though, I highly doubt there will be much working together over these next two years.
On top of all that, Democrats are already lining up relentless investigations and subpoenas. Trump’s no-back-down personality and a revengeful House only leads me to think more chaos is on the way.
Needless to say, this will be a very interesting two years.
In the meantime, we will continue to ride the green wave to the bank, capitalizing on whichever way the chips may fall with stocks and options. So keep your eyes on the money!
Happy trading WallStreet Jackboyz and girls!