'Volumes are monstrous:' Here's a quick guide to what traders are talking about right now

Dave Lutz, head of Exchange Traded Funds at JonesTrading, has a quick overview of what traders are talking about on Wednesday.

Obviously, it’s one thing: Donald Trump’s shocking election win.

However, investors are shifting focus to how President Trump’s infrastructure spending and tax-cut plans would be friendly to Wall Street. That’s slowing the panic buying into Treasuries. Stock futures are also above their worst levels of the night.

Here’s Lutz:

Good Morning! Not only did Trump Win, but the GOP held the Senate (and House). Ohio wasn’t even close. 52%-43%. He took PA and WI by 1%. They haven’t called Michigan yet, but he’s leading. Exit polls suggest Clinton did not succeed in winning the youth vote, to the extent that her predecessor did. Fifty-five per cent of young people aged 18-29 supported her, far short of the 63 per cent support which contributed to Obama’s victory in 2012 — I’d hate to be Paul Ryan this AM.

Some Bullets that I am talking about in the Chatrooms:

  • At the lows, S&P Futures (-5%) were locked limit down (ESZ6 2028.50), USDJPY was below 102, USGG10YR was nearing 1.70, Peso had collapsed 13% and Gold has surged nearly 5%. “The test for US equities today will be whether the S&P 500 can hold its 200-day moving average. Friday’s low was just above that support level, and today it comes in at 2086.91.”
  • 10YY has ripped higher to 1.95% as investors focus on the heavy Spending / Tax Cutting Policies that will be pushed thru a friendly Congress. Fed Rate-Hike Odds for Dec. Drop to 54% Based on Futures Pricing.
  • His Speech seemed to sooth nerves from the lows – He said he was “reaching out” to the people who had not supported him to “unify the country” – “We will get along with all other nations willing to get along with us. We will deal fairly with everyone. We will seek common ground, partnership not conflict.”
  • Our London Desk notes that “Volumes are monstrous + 150% across the board but mainly futures lead, main trading desks are relatively quiet” – FTSE rallied to up on day but slipping now as $/£ rallies. The export-heavy auto sector getting clubbed in the Stoxx Europe 600, shedding over 3%.
  • Japan’s Nikkei Stock Average shed 5.4%, its biggest loss since Britain’s June referendum – Gold and Coal Stocks propelled China into the Green tho.
  • Market feels good to me here. There was a gaggle of protection put on into this Election. Trump’s Speech was actually presidential and “healing”- and his Policies on Infrastructure and Taxation are very Spoo Friendly (more in WTAW later.)

NOW WATCH: Londoners relive Brexit shock as Trump wins the US election

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