Stocks Crumble; Investors Look Ahead To An Obama Presidency
Stocks sell off hard at the end of the day as volume picked up into the close.
The stock market is a great discounter of the future. Wednesday’s action can be construde as what we will expect from the stock market under Presdient Obama. Volume on the day was lower than Tuesday’s action, somewhat of a silver lining. Last week we saw the major indicies move higher on lighter trade and now we are beginning to see the complete opposite. If volume begins to swell to the downside it’ll be important to watch our prior October low.
There isn’t much out there to speak off. Some recent charts like EMS and APEI are simply too whippy and will be proned to nasty reversals. Price action in charts are not tight for example take a look at RHIE. RHIE is a promising IPO but its price action is too eratic. Again, charts aren’t there and secondary indicators like NH/NL ratio, put/call, and VIX aren’t aligning to point towards a bottom.
Stay nimble.
MS
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