Renewed stimulus hopes have the dollar trading lower and stocks higher this morning.  We’re now two months past the August deadline for a deal, so I’m not holding my breath that they’ll get something done in short order.  However, the fact that talks have been ongoing is encouraging. We’re coming down the home stretch to the election, and politics are heavily at play.  Everything seems to be a matter of how things are polling for each side at the moment, but I think both sides would benefit from a deal of some sort. During Wednesday’s release of the Fed minutes, Jerome Powell suggested that more stimulus would be needed in order to support a continued recovery. Regardless of when something happens, the market seems to be pricing in something getting done in the near future. Whether that is before or after the election remains to be seen, but I think it is safe to suggest that regardless of who wins, money will be flowing shortly after the election results at the latest. 

E-mini S&P 500 Dec ’20 Daily Chart

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Bill Dixon

Senior Market Strategist
Bill began his career working with a firm of technical commodity traders specializing in the treasury and metal markets. In 2006 he moved over to Lind-Waldock as a broker. Bill joined RJO Futures in 2011.
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