(By Rich Bieglmeier) Stock waffled around and closed in positive territory on election eve. It's been said 20 gazillion-billion times that the market doesn't like uncertainty. Until tonight's results are final – who knows when that will be – stocks could dance around the breakeven line.
The good news is that we could see some buy signals triggered if the stocks turn green once the silly season is over, which can't come soon enough in our view. We could see a bullish MACD crossover, under zero, if the indexes move much higher. Additionally, the indexes will have held-firm twice at similar pivot points, which could create a support level.
Outside of the election, there isn't another news item of interest that will be released today. Everything will take a back seat to exit polls and blah, blah, blah is calling this state or that state for…
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Since nothing of significance happened in the market Monday, and since iStock is in the business of making predictions, let us take a stab at the election results.
President Obama wins the Electoral College, but loses the popular vote by a wider margin than thought possible. We think it's more than possible as Republicans undoubtedly are more psyched to vote than Democrats. So, Obama wins most of his states by slim margins while Mitt Romney blows him out in red states.
Republicans add three or more seats in the house and gain one, maybe two seats in the Senate. It will be the worst of all outcomes as both sides will claim victory and be super unwilling to work together. Admittedly, our guess is the most unlikely scenario, but it's not too farfetched based on the pre-election polls. We'll know for sure in a just a few more hours.
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Regardless of which man voters pick, investors must get back to work on Wednesday. According to our take on more than 150 industry charts, small and mid-cap stocks might take lead in the weeks ahead, along with industrial stocks. We will have our entire list of industries and sectors to watch a little later today.
That's it for today. Tomorrow we will not have an opening report, see you on Wednesday. In the meantime, go vote.