It’s Mid-Termania!

The market is up again today but don’t get too excited. We had trouble holding on to gains yesterday which is exactly what happened a week ago.

For the last seven trading sessions, the closing high has been 1,185.64 and the closing low has been 1,182.45. Kinda narrow. Today we’ve been as high as 1192. Our Buy List is currently up 0.85% today compared with 0.67% for the S&P 500.

Of course, the big news today is the election. If the polling is to be believed, the Democrats are in for a major defeat. Intrade currently sees the GOP gaining over 60 seats in the House.

I should caution you from reading too much into the market from politics. I’ve called this the “Larry Kudlow Syndrome” where every uptick or downtick in the market is due to something in Washington.

I’m reminded of the story when Richard Nixon was asked what he’d be doing if he weren’t president. Nixon said that he’d probably be down on Wall Street buying stocks. They asked an old-time Wall Streeter what he thought of that. He said that if Nixon weren’t president, he, too, would be buying stocks.

The Federal Reserve also begins its two-day meeting today in Washington. The big news will come tomorrow at 2:15 pm when they will announce their Quantitative Easing plan. As I said before, I expect everyone else to be disappointed so don’t be surprised to see a minor pullback.

Then on Thursday, we’ll have three more earnings reports. If that isn’t enough excitement, on Friday we’ll have the jobs report. After that, however, most of November ought to be pretty dull.

Posted by on November 2nd, 2010 at 10:23 am


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