Traderbill's Financial Markets Weblog

…that was a wild ride on Monday that would have made old Mr. Toad envious…definitely an ‘E’ ticket! Sorry if you are too young to remember that at Disneyland. The market was pretty much like Disneyland only not in a good way… expecting a ‘dead cat bounce’ today…nothing more.

There were 542 new 52 week lows Monday and both Advance/Declines and Breadth were negative. So there must have been a lot of selling of losers for tax losses…these cannot be bought back for 31 days or it is a ‘wash sale.’ Therefore, any buying in them will be later in the month to front run those sellers, but there is no need to hurry. Must have also been some selling of winners for more offsets. Unusual to see the market that negative on the final day…coming out of investment managers wallets.

Keep in mind the payrolls reports on Friday, which should be weak and a big market mover. The next big event will be options expiry on Jan. 18. IF a rally is to start, hard to believe it will be before that week.

Some are saying that the market is already discounting Hillary as the next President…and if not her, Obama. A study of equities though shows that the stock market does better under Democrat presidents than Republicans…that is hard to explain but look how stocks did under Clinton? Now contrast to Dubya. Maybe the lobbyists work harder to convince the Dems when they are in power? But it appears the best the market does is with a GOP Congress and a Dem President…of course that was before we had tax and spend GOP’ers. TB mentions all this for his GOP readers so they know that at least there is a consolation prize. So just watch and learn… along with TB. One thing for sure: CEO’s always win!