Tuesday, November 2, 2010

Election Night Trade Target Reached

Long from 1182.25 - 9:31 PM Sunday Oct 31st . Final Target reached at 1196.25. If you were paying attention to Twitter , your profits: +14 pts

Let's ALL Toast to the great comeback of the BUSH years all over AGAIN, Hurraaay ! More Tax Cuts for the Rich stockholders and their Corporations so that they can continue to export US jobs overseas. Same old bullshit.What is good for WALL Street does not have to be for the Unemployed. Very smart America !

Today's Election Day rally was catalyzed primarily by US dollar weakness, market observers suggest. The greenback relinquished 0.7% today in face of a strengthening euro which gained ground following strong eurozone manufacturing data. Giving further impetus for equity market traders to take their cues from US dollar swings was the fact that there were no US economic data releases scheduled for today.

Apart from bringing clarity in regards to the election results, tomorrow will also bring a very crucial Fed meeting which is widely thought to result in further quantitative easing, as discussed here several times over the past few weeks. At this point, the market has likely priced in that QE2 will happen; the discussion are to what extent the market has already priced in a given size / scope of QE2, a minimum of $500 billion according to some economists. The market may further have priced in that Democrats will lose the House; in fact, prediction service Intrade suggests a 95% probability of this occurring. While some observers suggest a political change in Washington will bring fundamental improvements ( very doubfull due to the bad performance of the last Republican Congress ), others suggest the anticipatory rally seen since early September is / was nothing more than a liquidity event manipulated and generated by the Fed for the benefit of the Banksters.

Today's anemic overall volume output reflected uncertainty. Less than a billion shares were traded on the NYSE today. It is apparent that many traders / investors would like to see the outcome of both the elections and the Fed meeting before placing bets. Looking a little further ahead, on Friday, the US government is scheduled to release its monthly jobs report data ( not really important to Wall Street ), another crucial piece of the evolving economic puzzle.

1 comment:

  1. Insightful commentary ... sell the news or buy the news?