Trader Talk Wall Street bets big on AI while watching Washington unravel
Nov 5, 2025
Richard Ducat, lead market technician at Schwab Network with two decades of trading and charting expertise. He maps where AI and quantum computing are heating up, from IBM to chip and automation plays. They unpack how policy shocks slam sectors overnight, examine rare earths and supply chains, and compare gold versus bitcoin as a barometer of market fear.
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Elections Are Noise Until Resolved
- Midterm elections mainly create uncertainty rather than drive market direction.
- Markets move when uncertainty is resolved, so the post-midterm year often outperforms the pre-midterm year.
Trade On Fundamentals, Not Predictions
- Don't trade on which party will win; trade on how your holdings perform after outcomes.
- Rebalance and focus on fundamentals like earnings, valuations, and execution instead of political headlines.
Policy Can Slam Entire Sectors
- Government policy moves can cause sudden shocks to entire sectors like healthcare and solar.
- These shocks often create rapid declines that may later rebound once policy clarity returns.