Obama Wins?

Posted by downtowntrader | 11/04/2008 10:32:00 PM | 0 comments »

It sure looks like Obama will win tonight, but of course that shouldn't really surprise anyone. The bookies had it heavily in his favor, which makes it damn near a lock. The markets are getting a little ahead of themselves and are close to if not already tagging their upper bollinger bands. I am expecting a pullback in the next day or two and thus took a lot off the table today. Maybe the markets gap up tomorrow (futures are modestly higher) and run higher, but the risks are starting to outweigh the rewards in the short term. On the other hand, it looks like the dollar is finally ready to take a breather and this should really give a boost to commodities. Miners have been bouncing for a few days in anticipation of this and I think we will probably see gold and silver get a bounce. Oil has started to look interesting too, but some of the service stocks may not follow suit with an Obama victory.

Good Trading,