The Midterms Are Over… Wall Street Is Already Making Its Next Move

Democrats swept last night. They now control both the House and the Senate and the stock market is absolutely surging. Now, those two messages seem different. A lot of people believe that we want Republicans when it comes to finance. When it comes to the stock market, they tend to want lower taxes, pro business, right? And so, there's a lot of fear that we're going to get the opposite. Now, I held a special presentation, a live one for all of my members yesterday talking about this, saying what the market actually wants is split. You see, when the stock market historically has performed the best is not when [clears throat] one party controls the House, the Senate, and the White House and get anything done. In fact, it's the opposite of that. The best periods in stock market history are when they're gridlocked. when one party controls one house and one controls the other because nothing gets done and that is now what we have. Now let's take a look at the market. Let me show you what is happening. First of all, look up there in the top right. Look at all that beautiful green. S&P, NASDAQ, Dow, Russell, the equal weights are up. The the the uh gold and silver are up big. Crypto and the Ethereum, Bitcoin, all up big. So, everybody's bullish. money flowing into the market and look at this on a five-minute chart. So, this is what happened last night. This is when the stock market closed here Tuesday uh at 3:00 in the afternoon. Okay, results start coming out. It's looking like dims are going to sweep. Market sells off in fear and then boom, shakalaka. We tack on massive gains here. So, from 10:30 last night to the market open, the S&P rallied 3%. The NASDAQ did even better. Uh if we look at the ENQ, the NASDAQ futures, which trades overnight, look at that rally from last night when it was kind of confirmed. The Democrats have now swept these big important uh elections. 4.3% rally in the market. And so the reason that this is good for the market is that we now have certainty. Let me go ahead and spoil this for you. Here's what the next two years are going to look like. Trump's going to say, "I want this, this, this, this." Congress is going to go, "No, no, no, no." They're going to submit and pass pieces of legislation, bills, and every single one of them is going to land on Trump's desk, and he's going to veto it, and nothing's going to happen. They're going to whine and fuss and bicker at each other and post little gotcha clips on TikTok for the next two years, and nothing is going to happen. And that is what Wall Street wants. Now, I want to show you which areas of the market are doing the best, how this is going to play out over the next two years, and how you want to be positioned to profit from that. So, before we get into this uh in great depth, listen, we do this every single week for an hour live with our members in our Black Ops service. You can join for the whole year for just five bucks. So, every week we get together on Mondays for an hour, go through the market, where the opportunities are. I answer all of your questions. We look at your stocks. Uh you get that every week for a year for the five bucks. On top of my weekly newsletter, on top of our industry strength indicator, another session with our analysts. We throw the kitchen sink at you. It is the best value on YouTube in the finance space anywhere. The only reason we even charge the five bucks is just that their psychology uh and studies showing that people don't value things they don't pay for, even if it's just five bucks. So, if you're not a member, click the link in the description. You can even scan this QR code, but whatever you do, just get signed up. Uh, it's tradewithroths.com. Five bucks for the entire year. Okay. So, what's happening right now? Well, as we've seen, uh, and I showed you, big big rally happening right now. And and and when you look at the market, like let's take the S&P for example specifically, we've been very much in just this holding pattern for the last five or six months, all summer long. I mean, we've really gone nowhere. And looking at this, you'd think, boy, the stock market sure has been quiet. Must be like watching paint dry for the last 6 months. And it's actually the opposite of that because hidden within this, two things are happening. AI stocks are getting decimated and nonAI stocks are surging. I want you to take a look at this chart. So that dark blue line there is the Goldman Sachs AI basket. That's Nvidia and Coreweave and all the big AI names, right? And then in light blue, that's the S&P 500. All 500 of those stocks minus the AI names. Take the AI names out. And so if you look here when the market started chopping which is like in June right where so it just really has done nothing the last five months AI stocks got massively volatile sold off came back big big dump in September. Meanwhile the nonAI stocks over that same month over the last call it 30 days I'm looking right in this area right in here have surged higher. And so we've seen one group of stocks, the stocks that have really led this rally for the last three years, get crushed beneath the surface. At the same time, the boring stuff, the banks and the healthc care and the consumer staples, etc. have soared. And what happens when half the market is going straight down and half is going straight up is that on average they're doing nothing, right? The the the market just stays flat. Even though half are getting killed, but the half that are surging are offsetting that. So, it has been, as I've been calling it, a stealth bare market. The corrections we have been scared of and and looking for in a lot of these big stocks happened and the market just ate it, right? Look at what some of these stocks have done. Look at Broadcom. All right, this thing, a big AI leader, is down 33% over the last five months. Google just suffered its worst day of all time ever since it was went public in 2004. It is now down 30% from its high. Intel got massacred. Service Now uh got massacred. Seagate is is is off you know 40 50% from its high. That in Circle has done the same. and SanDisk, the big leader, the memory stock king that was up 2,000% has now been cut in half. And the same thing is true for Western Digital and for Oracle and and a lot of the others. So, you know, we have the AI bubble bursting. It's crazy to think about. Happened. We watched it happen and the market didn't sell off. So, now we're in a situation where fine, that's out of the way. the uncertainty that Wall Street hates is out of the way. We know the playing field for the next two years, which means nothing's going to get done and we're rallying. So, where's the rally going? Well, we're seeing a lot of it go in to healthcare and to banks. If you look at what is it IHF? Yeah, the healthcare uh ETF. Uh this thing sitting up near highs. And look, some of the stocks like we did Striker, if y'all remember that one uh SYK in in one of our our our live sessions um two weeks ago, maybe three weeks ago now for with our Black Ops members bought right in here. And you can see the alert still sitting there. We said, see that there said I said we're going to I'd be looking to take profits at 330 and raise the stop. It just hit it. It's stalling right there at 3:30. So classic pattern breakout. We did hinge in a video I did for you guys a couple of months ago because again, healthc care is very strong, tends to do well in these midterm election years. We had a perfect breakout pattern. Uh we got into this stock here at about 94 95 bucks a share. It's up 30% over the last couple of months. So there's a lot of opportunity out there and I believe that the remainder of the fourth quarter and especially the next 12 months are going to be very very fruitful for the stock market. Okay, the interest rate run everyone is worried about uh is rolling over. This is a 10-year interest rate. Okay, it's coming down. It's off 40 basis points over the last 30 days, which means mortgage rates are coming down a little bit. and and and as these yields shrink, more money is going to be going out of the money markets into bonds into stocks. We now have essentially a a hung government. We have the Democrats in control of Congress, the Republican control of the White House. They don't agree on anything because they're a bunch of petty children. So, nothing's going to get done. Perfect. Just don't mess with anything, right? That's what the market wants. The AI bubble bursting has kind of happened. those stocks are now trading at 30 to 50% below their peak. So, the reset has happened there. So, everything is lining up for a very very strong uh wrap up of 2026 and a strong 2027. And I've shown this data before, but just in case you haven't seen it, the data shows that in the 12 months following a midterm election, look at this last line down here. In the 12 months starting today, the stock market has been up 100% of the time since 1950 with an average gain of 12 to 15%. So really, really good seasonal um statistics behind us there. Okay, so where is the opportunity right now? Well, one of the easiest ways to figure out where money is flowing in Wall Street is to track which areas are going up the most. And for all of our Black Ops members, you have this. This is our industry strength indicator. It's free included with our Black Ops $5 membership, but it tracks the different areas of the market and shows which ones are gaining or losing the most over different time periods. And the idea being wherever the money's flowing is going to go up. And I showed you how health care is typically very strong um in the fourth quarter of an election year. We continue to see a lot of strength in healthc care in multiple areas in medical devices in pharmaceuticals. Uh biotechs are actually pretty strong starting to come up in here as well. And so these areas uh are where I'm kind of looking for stocks right now. So let's take the biotech uh area for example. Look at Gilead here. Okay. surp I can't believe I missed this one. But big big consolidation breakout early stages where it has come in and consolidated and tightened up just emerging from that pattern rocking higher. We have big names like Eli Liy doing the same thing. Notice how it spent, you know, five, six months chopping around in here, finally getting some legs and breaking out. Another area we're seeing a lot of strength is cyber security and it's kind of stalled for the last one month but continues to be a top performing area over multiple time periods. We got a couple of these uh trades we took two weeks ago. RPD, for example, Rapid 7, which I bought, we bought this one live, too, on that same day right here as it came through 14, went to 18 in just a couple of days. And you're now getting a retest where it comes back and retests that breakout area. Look how it's already bouncing off there. So, great second opportunity in RPD. Great second opportunity in checkpoint. Massive big base form in here. Perfect textbook breakout on volume, right? As it comes from 140 to 160. Get a little retest, revisiting that area. And look at today, it's gone from 140 to 148 just in the first 45 minutes of the day. Uh Zcaler, another potential trade in this space. It's just a beautiful clean uptrend in every test of the moving average. see where it comes in here and comes in here, you know, test this 20 to 50 day moving average area historically has been a great place to buy. And then the big pharmaceutical companies also looking really good. Merc, I think you're early, but notice how it is setting up that same pattern, right? A lot of strength. It goes into consolidation. If this thing can uh strengthen up in here, tighten up near the top, could be a big contender for a strong November December move here. Eli Lily. I think I might have covered this one before. Uh, Abby. Whoops. Avy. Look at that nice little breakout. See how it See how you get the strength. It then consolidates for several months as uh institutions accumulate positions. It then breaks out and once it does, it starts that run higher. So, you know, this is avy. All right? It's not Tesla. It's not AS Space Mobile. It's it's a big multi-undred billion dollar 500 billion half a trillion dollar uh pharmaceutical company. It's not one that jumps 30% in a week, but you're right here at the early stages of a big trend higher. So anyway, I wanted to put this video out for all of our members because we get a lot of questions. What about the midterms? What happens if Democrats win? What happens if Republican wins? Um, and regardless of whether or not you're happy with the outcome of the elections that took place last night, the stock market is all right. All at once is for Washington to just do nothing. Make your little clips, make your speeches, get on your soap boxes, but don't change anything. Just leave it all alone. Let the economy work and let the stock market uh grow. And that's what we have. So uh the seasonal or the historic precedent says we go higher from here. The technical picture says we go higher from here. The market internals show good improvement saying we go higher from here. So while anything can happen, everything I'm seeing says this is a great time to buy and we've got a really good couple of months potentially year in front of us in the stock market. Folks, don't forget to sign up for that Black Ops special. You will not believe your how much your understanding and knowledge of the investment market, of the stock market, of how to trade stocks can improve when we spend an hour together every single week for a year. It's five bucks. No strings, no tricks. Click the link, scan the code, or just go to tradewithro.com. Get signed up for that now. I will see you in Monday's live session. Uh, and for everyone else, I'll see you in the next