Healthy, sideways action for the market last week as we get set for the last week of the year, which is generally also one of the slowest times. I personally don't trade this week and take the time to go over my 2020 trading and figure out goals for 2021
We got the stimulus deal on the table last week but we're still steps away from completion needing President Trump's signature, as he signals he won't sign the Stimulus Deal and Government spending Legislation. The House is voting on increasing the stimulus deal's $600 direct payment to $2000, although we know that will get blocked in the Senate. If the deal doesn't get signed by Monday night the government will go into partial shutdown, barring another stop-gap funding by Congress. We should see a deal get done but a headline to keep an eye on Monday.
There is sneakily a big market risk as we start the new year with the Georgia senate runoff. The market reacted so well to the election because of the prospect of gridlock in congress but that can all change if the Georgia Senate Runoff goes the way of the democrats January 5th. This would mean the House, Senate and Presidency would be controlled by the left, indicating things like large tax increases on the wealthy as well as corporations, which the market surely would not like. Pretty much everything the market liked about the election results would be completely reversed. I'm surprised that this isn't a bigger headline among financial media with record voter registrations heading into the runoff.
Until then I'm expecting quiet market action to end the year.
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