- In Trade Chatter
- Last Updated: 07 November 2012
- By LA Little
Yesterday the country voted and the decision was reasonably clear though quite divided - four more years along the same path. Whether that is good or bad is neither here nor there in my mind; it is what it is. Just be thankful we have a chance to cast our votes in a nation where everyone gets one vote and we aren't coerced to vote a certain way. As investors and traders our task is always to take what comes along and see how it affects what is. What is, is a market at risk. It has been at risk and continues to be at risk. That doesn't mean it has to fail but the opportunity for failure on a larger scale is greater now than it has been since last year and when that situation arises one has to grow more careful. How one does that is a mix of how they approach the market and how much risk they see.
Last night the futures would jump any time it appears Romney would win and sink when it was Obama. Not making judgments as much as to reflect what traders were doing with there money. Now that it is official, futures are down about a percent.
We are gyrating in rather large steps right now on the upside and downside and follow through just isn't there on either side yet. I suspect that will change before long but for now, that is the name of the game - up and back.
The dollar has reversed course and is now trading higher with most other currencies lower. That puts some pressure on an attempted gold rally on the idea of more debt and easy money by this administration. Essentially yesterday is being repealed across most sectors and most accounts this morning.
Whether one is bullish or bearish, this is just back and forth for now with boundaries being formed. Once those boundaries break, then another directional move will ensue be it up or down.