Since the historic breadth thrust in stocks after the BREXIT, the market has certainly quieted down. I have written about the “coil” for two weeks and nothing has really changed. There is a big move coming sooner than later! I am keenly watching leadership for signs that a fresh leg higher towards Dow 20K has started.
Turning to the presidential election hysteria, it’s certainly been anything but quiet! BRUTAL is the first word that comes to mind. My opinion regarding the election remains unchanged. I do not believe it matters to the stock market who the next president is for more than a single digit decline.
Hillary is the epitome of establishment and is heavily supported by Wall Street, especially Goldman Sachs. Trump is the outsider who has riled even those in his own party. However, he is also a businessman who knows about the need for compromise. More bark than bite in my opinion. Convention wisdom holds that Hillary would be much better for the stock market than Trump.
Since the end of the DNC convention, Hillary has surged to a huge 10 point lead in the polls. Stocks haven’t responded at all. It seems like no one cares. And that’s something I believe will continue right into the election.
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