Thursday, November 5, 2020

Who Won This Election?

It's time to send in the UN observers and assess whether or not this is still a functioning democracy, or a full fledged banana republic. The going in assumption is the latter...

In this post we will assess via the markets who really won the election while we wait to find out which geezer will preside. Given that we've already record rallied on no one, we could see a major sell the news reaction on someone. If this election drags on, we should ask Zimbabwe for some pointers on how to run an election. I think they could be helpful. When Las Vegas is holding up your election you know you have a problem. Those people aren't even awake during the day much less counting ballots.

Four days of robo rally and via the new highs list we are starting to see who "won" the election.

There were 254 stocks that made new 52 week highs on the various exchanges today. Which is quite sizable. And there were 233 ETFs concentrated in a handful of sectors: Chinese stocks, Emerging Markets, clean energy, internet/work from home, Bitcoins, online retail, small cap growth, semiconductors, and momentum tech.

Hindsight being 2020 (I know), these are all sectors that have benefited in some way from the COVID collapse. Despite the fact that the virus originated in China, their total control over society meant that they recovered far more quickly than the rest of the world. As the year wore on, the rotation to these winners seen below grew more and more manic. This election was the last phase of the blowoff top:

Markets have taken the liberty of deciding that Biden will win and the trade war is over. Which means that China is the big winner in 2020. Multiple ETFs across a multitude of sectors reached new highs today. This is the broad-based index:

Yesterday I said that the alternative energy rally was over due to the fact that there was no blue wave. However, yesterday's selloff was followed by a new parabolic blowoff top today. Note that the top performing ETF of the year, Solar (TAN), the one I showed yesterday, did not make a new high today.

This broad-based clean energy ETF was the top performer today:

Semiconductors went parabolic today led by Qualcomm. Up 200% since the March lows.

Here is the 15 year chart. 

Any questions?

No sector has benefited more from COVID economic decimation than online retail:

No blue wave means that social media companies will not be held accountable for destroying society. They are now free to finish the job.

Note the similarity to September. It's called hard re-entry from outer orbit:

New daily record COVID cases, 116,000, compliments of the Trump superspreader 2020 tour

Momentum Tech, new parabolic high

New 52 week high for BitCasino:

And last but not least, now that Sith Lord McConnell is once again leading the Roman Senate, new highs for Wall Street:

Any questions?