Good Morning. Another long post today as the Monday Morning Brief will now also include the COT report from Friday. So I’ll keep the banter to a minimum. It appears at a minimum the big October storm, which is big, will also impact capital markets. With transit services affected, many I imagine won’t be able to make it to “the street.” So markets may be holiday staffed. How one interprets that is unclear.
Often, holiday markets see risk assets bid higher. But right now these markets need buying power as much as possible. With late news of the floor of the NYSE being closed, this could have a negative impact on those willing to buy anything risk related.
This is also the final week into the Presidential election. How that will impact markets is also unclear. You can make an argument bullish or bearish based on Romney or Obama winning. In the short term, such as the next few days, I view this as simply noise as the market is already in motion. This is just headlines to be spun to fit the tape. But it may in the very short term impact some risk assets.