Democrats will keep Senate majority; House in question
‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ The elections were not what most people were expecting, but that's not the most important thing for investors. The question is what people are expecting for the Fed going forward. Recent reports indicate that the Fed thinks it has inflation under control. That means the market is pricing in just a half point interest rate increase for December. This is a dangerous bet because there's a long time between now and the Fed's next meeting... And we'll have new data coming in this week. THREE THINGS TO KEEP AN EYE ON: 1. Walmart, Target, and Home Depot all report earnings
2. The Commerce Department reports retail sales data on Wednesday
3. The collapse of FTX and the resulting investigation
Elon Musk is joking that Sam Bankman-Fried's former status as a Democratic donor means there will be no investigation. That seems a bit presumptuous. If the GOP takes the House, even if by a small majority, a fishing expedition seems likely... And even the Democrats are going to be looking to consolidate control over cryptocurrency.
After all, SEC Chair Gary Gensler has been speaking about this danger for some time... but he's getting criticism for "missing" the FTX collapse. The best way to put that charge behind him is a crackdown on an industry that seems out of control. The elections are over, but the volatility is just ramping up. And it might be best for Elon Musk not to pick a fight right now.
Keep Moving, [TRADECOMMAND]( perhaps the single greatest weapon ever put in the hands of Main Street investors. THE OFFENSIVE is already underway. [Don't be left behind.]( WORD ON THE STREET SEC Under Pressure, Democrats Keep Senate, Pelosi Stays Speaker? - Did Gary Gensler Miss The Big One? - Republican Congressman Tom Emmer (who recently won re-election) tweeted that SEC Chair Gary Gensler "runs to the media while reports to my office allege he was helping SBF [Sam Bankman-Fried] and FTX work on legal loopholes to obtain a regulatory monopoly." Whether the charge is true or not, it's hard to imagine that the SEC won't use the opportunity to crack down harder on the cryptocurrency sector. Last week, the SEC chairman said the cryptocurrency sector is "significantly non-compliant" and that regulation is necessary because "investors around the globe are getting hurt."  - Sen. Schumer Boasts As Democrats Triumph - With Democratic victories called in Nevada and Arizona, Democrats have secured control over the upper chamber. "Your Senate Democratic Majority!" enthused Majority Leader Sen. Chuck Schumer (D-NY), who will get to keep his job. "Democrats had an amazing 2 years and got a record amount done this Congress," he said.  Meet the new boss... no, wait, it's literally the same guy as the old boss - Speaker Pelosi Says POTUS Should Run Again - The midterms have throttled the chances that any Democrat could challenge President Joe Biden for the nomination in 2024, assuming POTUS wants it again. "Yes, I do," responded Speaker of the House Nancy Pelosi to a direct question on whether she thinks that President Biden should run again. She mocked the GOP's red tide turning into a "little, tiny trickle, if that at all," and left open another term as Speaker if the Democrats can keep the majority.   - Disney (DIS) Bounces Back After Earnings Miss - Disney CEO Bob Chapek sent a memo to employees on Friday announcing a "targeted hiring freeze," as well as a "look at every avenue of operations and labor to find savings." It's bad news for current employees, as the CEO said "we do anticipate some staff reductions as part of this review." However, DIS bounced back by more than 5% on Friday. THIS TRADER MADE $64,000 IN JUST ONE WEEK And he never risked more than $10,000 at a time... [No Gimmicks. Just Results. Click Here Now and See For Yourself.]( HOT SPOTS: What's Going on in Geopolitics - Xi Jinping/POTUS Showdown - President Vladimir Putin will not be at the G20 Summit in Bali, Indonesia, but both President Joe Biden and President Xi Jinping will be there. Tensions will likely be high between the two powers, not just because of the war in Ukraine but because POTUS spent the weekend with Japanese and South Korean leaders, working to coordinate containment of China and North Korea in the Pacific. - Zelenskyy: "Hell" In Donetsk – Russian troops continue to advance village by village in slow motion battles in Donetsk, while jubilant crowds welcomed Ukrainian forces in liberated Kherson. Ukrainian president Volodymyr Zelenskyy admitted the situation in the east is "just hell" but praised Ukrainian units who "are withstanding the terrible pressure of the invaders, preserving our defense lines."  - Pentagon May Invest In Canadian Mining Projects - Amidst a fierce rivalry with China over rare earth elements, the American military is soliciting applications for mining projects in Canada that could receive funding from American taxpayers. A portfolio manager for the Defense Production Act program emphasized that Canada is already covered by existing legislation. "An investment in Alberta or Quebec or Nova Scotia would be no different than if it was in Nebraska or anywhere else in the United States," said Matthew Zolnowski. "As a matter of law."  CUTTING EDGE: What[']( Happening In Tech - Space Force Scares The Public With Secret Landing - A spaceship that's been circling Earth for almost three years. A sonic boom at about 5:15 in the morning. You can't be too dismissive of why some in Florida thought it was a UFO. A Space Force X-37B landed on Saturday after unleashing a massive sonic boom heard in much of Florida. While the Space Force trumpeted a successful landing, chaos reigned on social media as Central Floridians thought something had hit their houses.  - Record COVID In Beijing – China will have to make a choice between its zero-COVID policy and reality. China has reported 14,878 new COVID-19 cases, including a record number of new cases in the capital. Guangzhou and Zhengzhou have also been hit... raising the prospect of yet another lockdown that could harm tech companies.  - Elon Musk Picks A Fight - Tesla (TSLA) investors may have groaned internally as Elon Musk picked a fight with Senator Ed Markey. The senator complained that a reporter was able to create a verified account impersonating him. "I'm asking for answers from @elonmusk who is putting profits over people and his debt over stopping disinformation," he tweeted. "Twitter must explain how this happened and how to prevent it from happening again." "Perhaps it is because your real account sounds like a parody?" shot back Musk. Maybe it's not a good idea to throw down with the majority party in the Senate.   What could he mean by this? FOR YOUR CONSIDERATION "When your signals show a slowdown in upside momentum near these pivot points, look for your opportunity to go short again." is taking no breaks after last week... and it's by no means clear we've escaped the bear market. However, Chris Hood explains that even in a bear market, traders can make big short-term gains... as long as the technical signs are on your side. Your Options Coach explains how to win. [BEAR RALLY HOPIUM - DON'T GET ADDICTED]( Enjoying Dawn Report? Learn something, made some money?
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