The 2012 Election Is Over - What To Expect From Here?

I don't know about you guys but I'm really glad that the elections are over if nothing else just so I can get my TV back from all the political ads here in Virginia.

It seems that every other night my wife and I watched more political ads than anything else on TV for the past year. Good riddance to those damn ads!

Now that the election's over I think that both Republicans and Democrats have a very hard time trying to tackle the fiscal cliff that is coming. I'm sure you've all heard all the buzz-words swirling around media just in the last day or so.

Watch the video below to get my take on why today's trading session was very important for the indexes moving forward. There were some key technical analysis signals that could change your mind about a position or two.

Maybe today's trading in the stock market was just a small glimmer into what investors are thinking as we head into the end of the year and the possibility of this fiscal cliff. The huge selloff in stocks and subsequent rally in the bond market really shows that investors are getting away from riskier assets and moving money into more safe positions.

Of course this makes sense because given Obamas win it's likely that Bernanke might stay around even longer and further stimulate the economy via quantitative easing.

Regardless of how they figure out a solution to the problem, I've said it before and I'll say it again; the biggest problem that we face in this country is the deficit. It's unsustainable and frankly it's got to push us to the brink (like so many other EU countries already).

Until this problem is fixed I don't think anything else will support the economy into a consistent growth pattern. But of course these are my thoughts. . . what do you have to say about the election, fiscal cliff, etc? Add your comments and share your own opinion!

  • brian

    I'm excited to see the VIX actually showing a pulse again for some OTM spreads. Watching commodity ETFs, long some GDX and small initial positions in washed out EU country specific etfs as they are super cheap and they are holding strong relatively despite the doom and gloom. US markets already have made good runs so im not that excited about being long US markets but will see. I never use MACD crossovers, do you find those accurate ? (only found divergences that work for MACD)

    • http://optionalpha.com/ Kirk Du Plessis

      Thanks for the comment Brian! Yeah I do find them helpful when you use the cross in conjunction with momentum. CCI is also another favorite of mine.

  • JETWAKE

    $AAPL has dropped $150 per share from the high and -21% retracement. Buy at the -23.6% Fib fan line. Some people claim $AAPL is still a good buy and could be $1000 some day in the future. What other brand sells 3 million units in 3 days?

    • http://optionalpha.com/ Kirk Du Plessis

      But can they keep out-selling new products for years to come? There's no doubt Wall Street has a love affair with $AAPL but I always worry about over expecting.