Will the US elections give another boost before CPI data?
Yes MLS gained 1 pip to finish at 3.9c. Our volume was better than recent times, just over 3.2m shares traded. Still trading in same range.
ASX Li stocks were again mix of red and green. Of the 54 stocks I track, it was flat, so no gain or loss.
Overnight US Li stocks had a very big day. The ETF of LIT gained around 2%, but most other stocks, average increase was over 6%. ASX Li performed very poorly if we compare to that.
What next -
Yesterday I had said that historically mid-term elections have been a boost for stocks - it has started off in right direction, lets see if it can keep momentum. US indices had a third straight green, with SP 500 finishing on 3828 - gain of around half percent. ASX once again politely followed, with similar gain of half percent.
SP 500 had a topsy-turvy day yesterday. I had said we want it above 3800 which it did, so it was positive. It did fell around 3780, but bounced of the key support. Also hit resistance at 3860 and came back. For now, first target is 3890/3900 - we have to be above this for the run to continue and possibly see a match at 4100. Downside, 3780 and finally 3720.
Indicators were again mixed. Both Yields and Dollar index fell - those were positive and one of the reason market rallied. Volatility Index VIX I had written yesterday that it looks like bottoming, and somehow it came that way, so it bounced, close to 5%, now around 25.50 - one indicator not going in right direction.
Another short-term indicator - the mid-term elections. Many hoping for a Republican win - from stock market perspective. This is because market then thinks no major laws can be passed which could disadvantage it due to balance of power. And market likes stability. But still the big one is CPI tomorrow and it may overpower all indicators in the short to medium term.
So what will happen tonight? US Futures nearly flat. Asian markets mixed - both red and green. Cryptos for now have become irrelevant for comparison as dealing with their own issues. The election results are not yet out, but Republicans not doing as great as market wanted - of now, this could change when more results come out. No major data tonight except some mortgage related. We have had 3 greens in a row. It would be good to get another one and get close to 3900 before the big one tomorrow. Will that happen? Lets hope so. All the best.
MLS Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
