Joe Biden is chipping away at Trump’s early lead in the most crucial swing states, and he has strengthened his hold to become the President of the United States of America.
Joe Biden potentially needs just one more seat to push Donald Trump from his seat. On the other hand, President Trump has initiated court battles, and he is hoping to win the election.
President Trump has made clear to his supporters that the election victory is being stolen from him, and he has labelled the current vote counting as illegal. So far, Biden has expanded his lead in Nevada while President Trump’s lead has narrowed in Pennsylvania. Each state is still counting an increase in mail-in ballots.
Traders are anxious about the current situation, and no one knows how long this process will take, but one thing is for certain, it can easily expand into weeks, especially if court battles take a wrong turn. The whole process is full of uncertainty, but overall traders and investors are still pricing in Biden’s victory.
The US futures are stalling today, and we are seeing traders shaving some profit off their trades today.
After posting the worst week since March last week, the US stock market is on track to post the best week since April this year. Traders have taken the current sell-off as an opportunity and gone after the big names which have been selling at a heavy discount.
It would not be a stretched statement to say that the current momentum is still being driven largely by the tech stocks, as we have not seen a stellar rally for the rest of the sectors.
The tourism and hospitality sectors are especially underwater, and investors are eagerly waiting for potential vaccine news, which is imminent. It is highly likely that we will get the news any day now, and the moment that news hits the terminals, we could see airline, hotels, and other hospitality-related stocks surging through the roof.
Gold Bulls Are Back
The dollar index has also moved away from its two year low. The dollar fell off the cliff yesterday, which helped the gold price record some decent gains. Currently, the gold price is trading at $1,940. It has cleared the critical level of $1,900, giving hope to gold bulls. They believe that the path of the least resistance is skewed to the upside as long as the price stays above the psychological level of $1,900.
The dollar index’s weakness and a higher move in the gold price were also on the back of the Fed comments yesterday. The Fed once again relayed a dovish message. There is a strong need for more monetary and fiscal policy help; that was the message.
Although, the Fed kept the interest rate and its asset purchase programme unchanged yesterday. This has put the dollar index back in a downward trend, which means that the gold is likely to remain in an upward trend.
Bitcoin To The Moon
In the cryptocurrency space, it is another beautiful day for crypto traders as bitcoin continues to move higher and is currently trading above the critical level of $15K. One can spell many reasons for the current bull momentum for the crypto king Bitcoin, but the reality is that it is time for the bull momentum.
After a long period of downward trend and consolidation, the beast is back, and this time the journey is not about reaching the previous high. The ambition is much higher than that.
I have mentioned this several times before, that the next bull run, whenever the bull run comes, will not be for reaching the all-time high.
The price level that traders will be looking at will be the $50K price level. Of course, before we reach that level, the psychological resistance levels will be 25K, 30K, and then 40K.