Friends
Here are my two interpretations of today’s rally (and it was a nice one indeed). The first interpretation is that traders believe that Obama will win, and that means more of the same of what has moved the markets in the past three years (easy money and government stimulus). The result today was a lower dollar and risk on (stocks and commodities up). The other interpretation could be that traders are just glad this is about to be over and now we can get going on solving the fiscal cliff. Now, you may ask, why isn’t the rally today indicative of traders believing that Romney will win? My take is that if that were the case, the dollar would be rallying today which would most likely dampen the move if stocks and commodities. Of course, all this will be mute by tomorrow morning (at least we hope- we sure don’t need any hanging chads), but for today it at least gives us something to talk about while we are forced to endure this mind numbing election coverage.
For the day, the Dow Jones Industrial Average was up 133 points to close at 13,245. The S&P 500 was up 11 points to finish the day at 1428. Gold was up a solid $33 to trade at $1716 per ounce, while oil was up $2.83 to trade at $88.49 per barrel WTI. The S&P finished right in the recent resistance area once again.
Well, Election Day is just about behind us. Now hopefully we can get to the business of dealing with the challenges that lie ahead. This is a day when we just about have to be optimistic, isn’t it? Let’s hope for the best.
Have a nice evening everyone.
