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Table of Contents

1. Markets Post-Election

2. Important Data Events

3. Trading Levels

4. Trader Resource Center

   1. Prop Firm Deals

NEWS
📈🎩 Election Aftermath: How Financial Markets Reacted Through History 🇺🇸💸

Election seasons are as stressful for Wall Street as they are for Main Street. Investors brace themselves, politicians promise the world, and traders huddle over charts like sports fans in overtime. But what actually happens to the markets after a new (or returning) President takes office? Let’s take a look back at some of the standout elections in U.S. history and the market’s fascinating – and sometimes surprising – response.

1. The Great Depression and FDR’s New Deal (1932)

The year was 1932. The country was in the throes of the Great Depression, and the markets were as bruised as they’d ever been. Enter Franklin D. Roosevelt, promising a “New Deal” and giving Americans hope for a turnaround. FDR’s victory against Herbert Hoover was decisive, and the market reaction, well… it wasn’t immediate fireworks.

Post-Election Performance: The Dow Jones Industrial Average initially wavered, perhaps skeptical about the changes to come. But by the time FDR started enacting his New Deal policies, investors began to see a glimmer of optimism. The Dow rose nearly 75% during his first year in office, a remarkable recovery that set the stage for a long-term rally throughout the 1930s.

Takeaway: Sometimes the markets are hesitant about new directions, but a well-executed plan can turn skepticism into sustained growth.

2. JFK and the “New Frontier” (1960)

In 1960, young and charismatic John F. Kennedy took on the incumbent Vice President Richard Nixon in a close, nail-biting election. Kennedy’s victory signaled a shift towards a new era of optimism and growth, with an ambitious “New Frontier” plan.

Post-Election Performance: Initially, the market didn’t exactly burst into applause; stocks dipped slightly as investors adjusted to the idea of a Kennedy presidency. But optimism soon followed: in the months after JFK’s inauguration, the Dow rose by about 8%, helped along by his pro-business tax policies and a new generation’s hope for growth.

Takeaway: Market jitters post-election can settle into solid gains once economic policies become clear and optimism finds its way back into the charts.

3. Reagan’s “Morning in America” (1980)

When Ronald Reagan took on Jimmy Carter in 1980, inflation was skyrocketing, and the market seemed to reflect a lack of faith in the country’s economic direction. Reagan, with his promise to cut taxes and promote free-market policies, won in a landslide, ushering in a new era of conservatism.

Post-Election Performance: Markets responded with enthusiasm to Reagan’s win. Within a year, the Dow had climbed nearly 20%, and the bull market continued as his policies took hold. This marked the beginning of one of the longest bull runs in U.S. history, as tax cuts and deregulation fueled growth and investment.

Takeaway: When the markets anticipate pro-business policies, they’re usually quick to react – sometimes even before policies are in place.

4. The Tech Boom with Bill Clinton (1992)

In 1992, Bill Clinton took office during a recession, defeating incumbent President George H.W. Bush. Clinton’s focus on economic reform and modernization gave rise to what would become a defining market trend of the late 20th century: the tech boom.

Post-Election Performance: The markets initially had a moderate response, but as Clinton’s policies came into play, the Dow entered a period of explosive growth, rising from around 3,000 points in 1992 to over 10,000 by the end of the decade. It was an era of optimism and technological growth that fueled both Wall Street and Main Street.

Takeaway: New industries and technological revolutions can supercharge markets, often making elections a mere footnote in the grander trend.

5. The Bush-Gore Standoff (2000)

The 2000 election between George W. Bush and Al Gore was the definition of uncertainty. With Florida’s recount controversy, it was weeks before the Supreme Court officially declared Bush the winner. In the meantime, Wall Street was left in limbo.

Post-Election Performance: The markets reacted poorly to the uncertainty, with the Nasdaq falling nearly 25% by the time the dust settled in early 2001. The burst of the dot-com bubble also loomed, and investors faced a downturn just as Bush was taking office. The market eventually rebounded, but it took a while to recover from the shock.

Takeaway: When election results are contested or drawn out, markets tend to get jittery. Investors hate uncertainty – almost as much as they hate a bear market.

6. Hope and Change with Obama (2008)

When Barack Obama was elected in 2008, the economy was teetering on the edge of collapse, courtesy of the financial crisis. Obama’s message of “hope and change” struck a chord, but Wall Street was in survival mode.

Post-Election Performance: The Dow continued its downward spiral post-election, eventually hitting rock bottom in March 2009. But from there, the markets began a monumental recovery that would last for the entire duration of Obama’s two terms. By the end of his presidency, the Dow had climbed from under 8,000 points to over 19,000.

Takeaway: Economic crises are often bigger than any one administration. The market’s resilience can surprise even in times of turmoil.

7. Trump and the Post-Election Rally (2016)

Donald Trump’s 2016 win was one of the most unexpected in recent history. Markets initially braced for a potential shock, with futures diving overnight as Trump’s victory became clear. But by the morning after, stocks had rebounded and continued to rally.

Post-Election Performance: The Dow surged nearly 20% in Trump’s first year, as investors anticipated tax cuts, deregulation, and other business-friendly policies. The rally reflected a “risk-on” sentiment as the markets embraced the prospect of higher growth, culminating in record highs by early 2020.

Takeaway: Market rallies often reflect sentiment as much as substance, with policy expectations driving investor confidence.

8. Biden’s COVID-Era Election (2020)

In 2020, Joe Biden defeated Trump amid the COVID-19 pandemic, one of the most volatile times in market history. With the pandemic shaking the global economy, markets had seen extreme highs and lows throughout the year.

Post-Election Performance: Surprisingly, the markets continued to perform well, bolstered by massive government stimulus and vaccine rollouts. The Dow hit new records even as uncertainty loomed. By mid-2021, the market had largely priced in expectations for a return to normalcy and recovery.

Takeaway: In times of crisis, markets may respond more to fiscal and monetary policy than to election outcomes, prioritizing stability over partisanship.

The Bottom Line

As history shows, markets have a habit of reacting emotionally in the short term – but in the long run, they’re far more resilient than we might think. Elections bring change, but Wall Street often takes a pragmatic approach: policy, fiscal health, and innovation matter more than politics. So, as the next election approaches, remember: markets have weathered it all, and they’ll continue to evolve in ways even the best pollsters can’t predict.

EVENTS
Important Data Events - Week 46

🟠 = less important

🔴 = more important

Monday, November 11

Tuesday, November 12

Wednesday, November 13

Thursday, November 14

Friday, November 15

WEEKLY TRADING LEVELS
FUTURES INDICIES

Enjoy this list of levels that have been curated for you! These levels are some major support and resistance levels that have been identified as areas of interest.

Use them to guide your charting, happy trading! ☘️

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