Stimulus Zombie

We get another healthy gap up as Pelosi must have seen the final hour dump in SPX futures to try to pump up the markets over the weekend being "optimistic" about getting a fiscal stimulus done before the election.  There is only 2 more weeks of these garbage headlines that we have coming before everyone can finally move on to garbage Pelosi/Biden rumors of big stimulus.  

The US stock market which used to move at the whims of the Fed, now move at the whims of politicians in Washington.  The Fed is a given, QE machine, so they are taken for granted now.  Wall Street is now trying to force its wants on Capitol Hill, demanding more and more stimulus.  This is just the beginning.  It will only get worse over the next 4 years, especially if you get a Democratic sweep, as they seem to care even less than big deficit loving Republicans about blowing out the deficit as long as they can spend the money on their pet pork projects.  

Talk about the fall of your once great empires.  It used to be the excitement of new technology that fueled giant bubbles (dotcom boom) in the US, now its the excitement of free money raining down on Wall Street from politicians that gets investors excited.  

I am fighting a very strong uptrend by being short, but the election is sort of like a safety valve, at least for the next week, because fund managers hate uncertainty, and no matter how lopsided Biden is winning in polls, there is always that lingering doubt in the minds of traders who are afraid of either a Biden win and a Senate majority for Republicans, or worse, a close election won by Biden that is heavily contested by Trump.  And with all the new found optimism over the past 3 weeks, it seems to have hit a peak last week, and that should give room for some downside this week.  Even with Pelosi trying to talk up the stock market, and her 48 hour deadline to the White House to get stimulus done.  

I guess Trump could just say eff it, give Pelosi everything she wants and try to get it passed before the election hoping it gets him re-elected.  And that could provide a short term pop in the market but since this market has been grinding higher on stimulus hopes for what seems like forever, I would view that as a sell the news event ahead of a potential contested election.  

Remain short, expecting one more shot of volatility before the election.