The bill is now on the president’s desk, but he calls the stimulus bill unacceptable.  He calls on Congress to raise the direct payments to $2000 from the approved $600 and cut the laundry list of wasteful pork belly spending.  An interesting turn of events is likely to keep the media hopping and the market unsettled with the uncertainty.  The NASDAQ printed its 54^th new record high in 2020 yesterday, a remarkable feat considering the economy’s actual state.  Keep in mind volume typically declines as we head into the holiday shutdown.  Plan your risk accordingly.

Overnight Asian markets rallied in response to the Congressional passage of the stimulus bill.  Across the pond, European are mostly higher on hopes that a Brexit trade deal is on the verge of completion.  U.S. Futures recovered overnight loss and currently point to a bullish open ahead of a busy economic calendar with potentially market-moving effects.  Right Way Options will be closed on Christmas Eve and Christmas day, so there will be no blog or Morning Prep Video.  On behalf of my family, I want to wish you and yours a safe, Very Merry Christmas. 

Economic Calendar

Earnings Calendar

It should not be a big surprise that there are very few earnings as we head toward the Christmas shut down.  There is only one notable report, PAYX.  We have no notable reports on Thursday and, of course, Friday.

News and Technicals’

After weeks of wrangling, both Congress bodies finally passed the stimulus bill, but now that’s it’s on the President’s desk, he says it’s unacceptable.  Although he has not said he will veto the bill, he has asked Congress to increase the direct payments to $2000 per citizen and up to $4000 per couple.  He also listed a disgraceful laundry list of wasteful pork belly spending in the bill he wants cut before signing the spending plan.  A movie script on the last few week’s politicals in the U.S. would have been trashed as too unbelievable just a few years ago.  According to reports, the U.K. and E.U. may be near a Brexit trade deal, good news, as they quickly approach the deadline.  With the new virus, strain brings up worries of more business restrictions; the Dow lost ground yesterday, but the resilient NASDAQ inked its 54th new record of 2020.  A remarkable and honestly unbelievable feat considering the state of the economy and rapidly pandemic having many hospitals near capacity.

We have a very bid day on the Economic Calendar today, and the bulls remain very feisty, recovering from overnight losses pointing to a bullish open.  Index trends remain bullish, but with the Absolute Breadth Index continuing to decline and the holidays just around the corner, there is a reason for caution.  Plan your risk carefully.  Right Way Options will be closed on Christmas Eve and Christmas day, so there will be no blog or Morning Prep Video.  On behalf of my family, I want to wish you and yours a safe, Very Merry Christmas. 

Trade Wisely,

Doug