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Trump Refuses to Concede

USD/CAD (US Dollar versus Canadian Dollar)
Source: MT4 (November 11, 2020)

The USD/CAD appears to be attempting to form a bottom. Support on the currency pair is seen near the November lows at 1.2976. Resistance is seen near a downward sloping trend line that comes in near 1.3420. Momentum has turned positive as the fast stochastic has generated a crossover buy signal. The current reading on the fast stochastic is 33, up fron an oversold reading of 15, which reflects accelerating positive momentum.

 

TAKEAWAYS


•    Stocks Close Mixed
•    Trump Refuses to Conceed
•    The Dollar Rises
•    Oil Prices Whipsaw
•    TikTok Asks for Extention
•    DAY AHEAD: Jobless Claims 
 

GURU WISDOM


"The greatest glory in living lies not in never falling, but in rising every time we fall." -Nelson Mandela
 

MARKETS


US stocks closed the Wednesday session mixed, as technology shares helped push the Nasdaq into positive territory. Sectors in the S&P 500 index were mixed, led higher by technology shares. Energy shares were the worst performing sector in the S&P 500. Oil prices whipsawed initially rising, but mid-day the tide turned pushing prices down to an unchanged reading on the session. The bond market was closed on Wednesday due to Veterans Day.

Georgia announced on Wednesday that they would recount all votes from the Presidential election. The vote count, which has Biden up by more than 14K votes, is less than 0.5%, which falls into the states acceptable range to perform a recount. 
President Trump has told advisors that he has no plans to concede. His unwillingness to move on is creating some problems for the Biden transition team. Without a signoff from the General Services Administration, which is part of the US government, the Biden transition team cannot have access to national security issues or any government funding.

Jim Cramer early in the trading session brought up the question of what will the U.S. do if the President of the United States decides that he won’t leave. The President has fired the top people in the Defense Department over the last 2-days, which might be a sign that he is attempting to remove any people that will stand in his way of holding on to the government. Cramer used the word “coup” to describe what is currently happening and asked his cohosts what can be done if this actually comes to pass.
 

TikTok Asks for an Extension


The parent of TikTok, ByteDance requested from a U.S. appeals court for an extension on the deadline for when it would face a forced sale to work out a potential divestiture. The petition said the U.S. government’s decision to force a TikTok deal was ‘arbitrary’ and denied the company due process under the law.
 

Mortgage Applications Volumes Fall


Mortgage applications to purchase a home in the United States fell 3% for the week and were 16% higher than a year ago. One issue appears to be that loan amounts are reaching elevated levels due to surging home prices. Unfortunately, low rates are not offsetting rising prices enough to attract new mortgage owners. The average contract interest rate for 30-year fixed-rate mortgages hit 2.98% from 3.01. 
 

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