Markets LOVE a Gridlocked Government

Welcome to the Rude Awakening for Friday, November 6, 2020.

After four straight days of monster rallies, the market is taking a breather and showing a flatter day for us.

It seems the market feels calm amidst a likely certainty that we have our new president. And judging by the killer up days we’ve seen since election day, it’s known about an impending resolution to all the drama our country’s seen for the past several months. We also had better than expected unemployment numbers come out.

As Yahoo! Finance reports:

Stocks were lower Friday morning as investors took a pause after a four-day rally and continued to await election results from key states.

Better-than-expected jobs data helped to curb losses, however. The Labor Department reported that the economy created 638,000 jobs last month, more than the 580,000 expected, while upwardly revising September’s data to 672,000. Friday’s jobs report also saw upward revisions to the last couple months’ worth of payrolls — a sign that soaring new COVID-19 infections aren’t yet preventing new jobs from being created.

We are definitely seeing some resilience back in the marketplace.

The question now is, can we break above our recent high of about $3,518 in the S&P.

We are very close, at just above $3,510, as I write.

The market is showing satisfaction with a gridlocked government: a Biden presidency and a Republican controlled Senate. This tends to be a sweet spot for the markets.

Bitcoin has been shooting up, too, now trading near the $16,000 level, which is has not seen in a very long time.

Once again, a LOT of activity in this marketplace.

Now, we should look to set ourselves up for activity to come to fruition this Monday.

This brings us to…

The Latest on Our Watchlist

As you know, we’re still in earnings season.

Gogo Inc. (GOGO) is the company that provides wifi on airplanes. The stock has seen a lot of activity, bouncing around $1.50, now up in the $10 range, dropping to just below $9 on the day.


That big pop you see is due to their selling some assets and getting an influx of capital.

They report earnings before the bell on Nov 9, this coming Monday.

Another one to watch is, LLC (CARS), currently sitting right around their 50day MA.


They will also report earnings before the open on Monday, Nov 9.

Options on CARS are implying a 17% potential move. Definitely keep this one on your watchlist.

Last but not least, McDonald’s Corporation (MCD). they’ve been in a bit of a downturn lately, sitting below its 50day MA.


But, they also report earnings Monday morning, before market open Nov 9.

MCD options are showing a 13% move, a positive bias.

It’s been a very interesting week trading, folks.

We’ll see if the market can hold today, or if we’ll go even higher…

This is your update, guys.

We’ll come back to you Monday to see how all this plays out.

Have a good safe trading day, and we’ll talk to you soon.


Scott Stewart

Scott Stewart
Editor, Rude Awakening

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Scott Stewart

Scott Stewart has been trading for decades. He has acted as an analyst and educator on the stock market for just as long. As your Rich Dad's Weekly Cash Flow analyst, Scott works tirelessly to ensure you know everything you need to do when entering into new positions, and adjusting trades as you go along....

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