The smoke has cleared. President Obama has won re-election. The country is the most divided its been since 1883.
47 million people pay no income taxes. Will those that earn continue to invest and have faith in the US economy?
Long term I am am bullish the USA. Despite the vagaries of politics and the whims of the masses, the USA still has been blessed with all that it has been blessed with.
Will the earners continue to work hard, knowing they have targets on their backs? Or will they sit in the trenches, popping up occasionally to take pot shots at only the best opportunities? It’s anyone’s guess.
Ok, enough gobbledy gook.
Positions. Maintain stops on any long positions still in place. The Dec Dow futures have already breached 13,000, with a low tick so far at 12, 984. Down 182 pts, the knee jerk reaction so far has been a big F bomb right back at the Dems.
If you are bearish, buy some 12,000 puts. That was our low back in June. We had a 1700 pt rally in 4 months. Remember that?
Support comes at 13,000, 12,800 and the 12,560. Buy those dips. As scary as it might be.
There will be a knee jerk reaction here lower. Fundamentally nothing has changed.
Democratic socialist President/ Democratic Middle of the Road Senate/ House controlled by conservative Ideologues ready to throw down and maintain government grid lock.
The problem of the debt won’t be fixed unless we meet in the middle.
This President just spent 1B dollars attacking and demonizing guys who, today, he has to make a deal with.
Given his demonstrated disdain for meeting with “folks” to use his favorite term. He doesn’t even meet with his own representatives on the Hill. Based on past performance, is he going to turn over a new leaf and suddenly be the back slapping, deal maker required to get a compromise done?
Doubtful.
Right now the crowd is pissed and voting with their money flow.
CER