Everyone into the pool – Votes are still being counted, and lawsuits are flying, but markets are still reacting as if a quick outcome will occur. What is known though is that no Blue Wave is coming. That realization yesterday forced a quick move away from those perceived winners (Industrials/ Banks/ Material), and back into the YTD leaders (mega tech/ Semis). The approach today is more all-encompassing, with yesterday’s losers leading. Materials/ Metals are +5%, Banks +4.1% and Transportation +3.3%. Homebuilders are lagging (ITB +16bps), but they were up 5% Wednesday. As the Value guys play a little catch up, mega teach and Semis are also performing. Earnings from Qualcomm (+13.4%) and Qorvo (+7.7%) reminded the market again why the sector is +34% this year. If the major equity indexes were testing their technical levels Monday, they are above them now, and even the Russell 2000 is at an 8 month high.
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