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Wednesday, November 4, 2020

A happy outcome for the market

First of all, while we don't know who the winner is… but we do know the pollsters made blithering idiots of themselves. Again.  Where is the blue wave they have fooled themselves first and then tried to mislead you to believe as well? A bunch of pure IDIOTS indeed of those major media!!

It is apparent that we are now seeing some very suspicious activities that raise the question whether some sort of fraud/cheating practice has been conducted in this election.
Here is what happened in Michigan: " Last night President Trump was leading significantly in several swing states including Georgia, North Carolina, Michigan, Wisconsin and Pennsylvania. President Trump had a significant lead in Michigan late last night.Then all of the sudden Joe Biden jumped up 200,000 votes and has the lead over President Trump. 200,000 VOTES!"

We will see how it will finally end up. To me Trump has already won the election if it is a fair and honest vote but it is very questionable this is truly a honest and fair election as far as I can see!!

From Michigan Poll Watcher on the Scene: Republicans Allegedly Witnessed Suspicious Vehicles Dropping Off Ballots

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While the election has turned out to be indeed a contested one with uncertainty that may continue for a while, the market is apparently happy with the current result, not because it knows for certainty who will be the next President but it appears one thing is very clear by now regardless of who will win: a divided government in the sense that the House will still be controlled by DEM and Senate by GOP. Whoever is the next president will face a so-called gridlock situation. What it practically means is that no major policy changes will be passed and implemented with a split parliament. As such this has become a kind of certainty for the market which loves and therefore it has shot up fiercely today. After all, last week was a pretty pessimistic week, especially for tech stocks that got really hammered very hard. As I told my DW Family, I expected some explosive rebound this week and we bet with some long positions for it. Luckily the return was quite explosive as well and fast. Having said that, I think this is still likely just a rebound, not yet a change of trend for now. As such, after harvesting my long profits, I'm placing shorts today, expecting some selloff at least for the next few days. I doubt we will see new highs just yet or soon. As the election may very likely become a legal battle, which won't be resolved soon, we will continue to see a volatile market. To me swing trading is still the best strategy at the moment!

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By the way, if you are interested in joining my DW investment group, we have set up a Telegram group. 

Here is the link for "DW  谈股论金": https://t.me/joinchat/SgYa_xNrjTNHk9cS51ke0A.    

Importantly, you cannot join directly via Wechat. Two options:

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