Stocks have gotten hit hard this week. Have investors perhaps caught a whiff of a possible Biden victory and the damage he and his socialist running mate would inflict on American businesses and the middle class? That’s one explanation, and I raised the possibility here numerous times over the last several weeks that it could occur, even if it was highly unlikely. In any event, the stock market is a lot smarter than the pollsters, and therefore probably better at predicting Tuesday’s winner. However, Wall Street is also a sleazy carnival midway on a giant scale, and so it can be assumed that regardless of which way shares are moving on a given day, there is a reason for it that suits the needs of the market’s Masters.
Covid Lie Helps
So why would they want stocks to fall? My theory is that because they are pretty certain Trump is going to be re-elected, they’ve pulled their bids in order to accumulate shares at fire-sale prices. This would position them for the huge rally that is all but certain to follow a Trump victory. Manipulating the markets in this way is especially easy with the news media promoting the lie that Covid-19 has gone out of control. They’ve hammered this phony story lately because they think it will help defeat Trump. If it scares you, relax — I am still predicting that Trump will win by a landslide, and as for the virus, cases are expanding simply because testing has greatly expanded. Rick’s Picks subscribers will be getting ready for the big rally by laying in some cheap call spreads for spectacular leverage. If you don’t subscribe, click the trial offer button near the top of this page and join the fun. See you in the chat room! _______ UPDATE (Oct 29, 9:11 p.m.): Stocks got traction Thursday after a hard selloff earlier in the week. Expect the market to spend Friday idling quietly, since, polls aside, no one really knows how the election will turn out. I still see a Trump landslide, but it’s just a gut feeling. I will explain why in commentary that will be out Sunday evening.