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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (39890)	11/6/2012 8:19:56 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 218824

The way I read the "market tea leaves" is that a Romney win represents the likelihood that the Bush tax cuts will remain in place. This should avoid a end of year sell-off to avoid higher tax rates next year. If Obama wins we may yet see a late year surge into which "smart money" will attempt to distribute before January 1st. But longer term, a Romney win means the likelihood of lower deficits, or at least a cap on spending. This may be bad for companies heavily dependent upon gov't stimulus. An Obama win suggests that gov't deficits will continue to climb. Then there is the question of the USD. Will a Romney win mean that the stock markets will decouple from the inverse relationship between the SPX, Commodities (Oil, Gold.. etc) and the USD? Will an appreciating USD be followed by an appreciating SPX and decrease in the USD-Gold/Oil carry trade? Certainly lower energy prices would be wonderful for the US economy. And consequently that would weigh upon Gold and other commodities. Hawk