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STRATEGY: Futures setting up for a strong week ...again
Over the weekend, several media outlets declared Biden the winner of the 2020 Presidential election. The incumbent President Trump has not formally conceded. Instead, it appears that the plurality of the media and the public has declared a winner for the election. And from a financial market's perspective, this is a further reduction in "uncertainty."
- as we all know, less "uncertainty" is incremental certainty = risk-on
Thus, as shown below, S&P 500 equity futures are strong Sunday evening, showing a ~1.5% gain, building upon an already impressive rally for the past week and a half. As we noted previously, we believe a 10% rally past 3,600 is likely given a Biden win (plus Blue Wave). And Republicans holding the Senate is probably an incremental positive.