To: jaker who wrote (3201 ) 10/26/2006 1:35:55 PM From: MACD X Respond to of 6865 Jakers exactly what I had in mind. h1.ripway.com The chart above is from your post on 3201. What I have learned by looking at this chart is that only 1987 has anything to do with the possibility of today. Unless I missed something. Others feel free to post what they see because one cant see everything. in 1986 to 1987 the Republicans lost the senate to the democrats in which they had control of both going into that time frame same as now. The winners of this changing of the guard where Con.Staples, Con.Discretionary, Health Care, Telecom Services, The losers were Financials, Tech, Industrials. Now to the possible senirios, if the Democrats get control of either the house or the senate and it effects the markets the same way this time, I would have to feel that the Telecoms may not join the party this time as it did back then, I do believe that it would help Health Care, Con. Discretionary and Con. Staples, out of which Health Care may be a big winner. Republicans record on health care is not anything to write home about as were the Democrats want national health care. The big loser should again be industrials because the Democrats while wanting to hug trees may make it harder for industrial to make a buck being over regulated. And that brings up the point of the defensive staples and discretionarys, they should do well because people will use them no matter who gets in. All other sectors should feel the shock. Especially the Oil sector which should tank in the event of a democratic take over. This is all speculation and my thoughts, it would be interesting to here others views as I am just one man and like to hear the other side in most cases. Now to senirio #2, If the republicans remain in control of the senate and the house, oil stocks and industrials will probably continue to outperform. It doesnt hurt when the vic president is the ex big boss at a major oil company, but I am sure the rise in the oil sector the last 2 years was purlely a coincident [hee hee]. The oil price fall of the last few months while probably politically motivated may be the fear of the market of a democratic take over of either the house or senate. When it becomes clear that the republicans may remain in control would likely start a rally in the oil sector. This may be setting up now, as the price of oil looks to be finding a bottom. It is also interesting to note that a recession soon followed the 86 87 election as this is what is likely to happen this time also. investorshub.com The post above is that of return to senders site, although it is a great site its not why I posted it. What I would like you to look at is the fidelity sector rotation chart approximately in the center of the heading. It shows that at the end of a market cycles and near the start of a recession Health care and con. staples are next to lead the market, this may be exactly correct. Return to Sender specializes in market and sector rotation as his site is set up to follow this. I would be interested to hear what return to senders feeling are on the subject of this post. Just a few thoughts, rebutals welcome.