The election seems to be front and center this evening as we write this. CNN has projected that the Democrats will take the House but have said the Senate races are too close to call at this time. Meanwhile the stock index futures are down slightly in over night trading but this does not suggest a lower start in the morning.
We expect that Wednesday’s trading will be affected by the results to some degree and we are not in any position to make a call for the trading. What we can say relates strictly to Tuesday’s trading and that was a bit of surprise as the market opened fairly calmly but rocketed up shortly after the open. The midday trading followed a flat line pattern until some of the support fell out during the afternoon. The market still finished up quite a bit but the Dow was unable to hold record territory at the close.
Our position continues to be that the market is dangerous right now. We look at the rampant bullishness for the market even as prices have not moved up much above the highs set at the beginning of the year. Certainly the headliner Dow has popped up slightly above with its record close a few weeks ago but the rest of the market has not. These are the little disconnects that we try to remind you about once in a while.
In our next post, hopefully we can bring you something that represents clear trading in the market. The election seems to have clouded the picture on a very short term basis. Just remember that the market rarely trades on facts, but anticipation of possible facts.
Dow Industrials: 12,156.77 +51.22