It’s been the most expensive mid-term election in US history, voter turnout is expected to reach record highs, and yet, most analysts are thinking this will not have much impact on the financial markets.

Usually, during the year of a US mid-term election, the stocks rally. However, evidence suggests that this is less about the outcome of the vote than it is about presidential fiscal cycles.

During the 2nd year, the president will usually try to implement some sort of fiscal stimulus to carry them through to the next election. Trump however, introduced his ample stimulus package much earlier in his term, which is one of the reasons that some analysts are saying that prices have topped.

One thing’s for sure, whatever the outcome is, markets will very quickly shift focus back to the Federal Reserve who will be meeting this Thursday, they’re a much larger market player than Congress.

Today’s Highlights

  • Tech Divergence
  • XRP Rocket
  • Crypto Christmas Rally
  • Traditional Markets

    Trading volumes have been thin across the board ahead of the Fed and the mid-term elections. This might continue as we get closer to each event. Thin liquidity often leads to abrupt price movements, so please be cautious.

    Yesterday was kind of a weird one as a notable divergence emerged between tech stocks and the rest of the markets. Led by Apple, the tech-heavy Nasdaq index (white) saw declines as the S&P500 (green) ended positively.

    As the equity markets figure out what’s going on, let’s shift over to crypto which is way more interesting at the moment.

    XRP Rocket

    There haven’t been any big-ticket news items I’ve noticed that would have pushed the XRP price up 15% in the last 24 hours, so we can only conclude that the move is more technical in nature, or that it’s being caused by some large players buying in.

    My best guess is that the Bitcoin Cash hard fork has sparked some sort of spillover into other cryptos. The XRP community is known for being closely in touch with short-term price movements, so it makes sense that the rally can be felt most strongly here.

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