Traders took the day off today as volume was very light going into the election tomorrow. Many have asked me what I think about the election and its effects on the markets. It may be a non-event. I believe the market has been pricing in an Obama victory. So, if that does indeed happen, the market may just meander around. I think the bigger question will be how many Senate seats will the democrats get. That may be bigger than the presidential election. We’ll see.
I think we still have more to go in this rally but it’s still too early to dump a bunch in. Nibbling is fine. But, leave yourself some cash to buy on dips if we have weak pullbacks. If you are one that is waiting until we get past the election, that doesn’t hurt my feelings. It’s not a bad plan. We’ll know more tomorrow. The longer we go on and don’t give back those big gains from a few days ago, the better things will be.
