Good Morning. Tonight we have the second of three Presidential debates. And in anticipation markets seem to be catching a bid. Was that the tailwind behind today’s move higher? Possible. Whoever wins the election three weeks from today, they will struggle to deliver anything they promise.
And if Romney wins, I have to imagine the pressure for Chairman Bernanke to step down will be great. I don’t know how feasible or what the process is to remove a sitting Fed Chairman but it seems markets have not priced that type of event in. And with Romney apparently gaining in the polls, will a perceived win by him tonight cause markets to sell off? Likely not, but you can make a basis for it.
As for those lovely markets in which we get to interact each day (pardon the sarcasm this evening), we should know soon what the model’s signal will bring this time. Will it bring sideways action? Will it bring a big move lower? Or will it bring a stopped out position as markets push higher.