The U.S. Stock Market traded within its narrowest range in weeks today, ahead of the all important Presidential Election on Tuesday. Volume was also extremely light, as the markets eked out a small gain for the day. The markets will be watching closely to see whether the Democrats are able to achieve a filibuster proof majority in the Senate. That will allow them to push through any agenda they wish, without any kind of consent from, or compromise with the Republicans. This includes increases in Capital Gains taxes and taxes on dividends, two policy issues Wall Street does not like.
With that in mind, I suspect that the market will sell off a bit if the Democrats achieve that majority in the Senate. Otherwise, I anticipate a bit of a relief rally after the election, no matter who is elected.
In other markets today, the Dollar rallied sharply against the Euro and the Pound again today, reversing the losses of late last week. Treasuries perked up on week auto sales data, as October looks to be the slowest month of sales in 25 years.
Commodity prices were mixed, with the energies sharply lower and grain markets up a bit today.
Scott Cole
www.bestdaytradingstocks.com
www.kungfutrader.com
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