Market Sees Green as It Awaits Election Clarity

Amidst a swirl of speculation about the outcome of the presidential election, stocks managed a solid day of gains. Breadth was stellar, with 7,600 gainers to 1,850 decliners. The Russell 2000 IWM led the charge with an increase of nearly 2%, but it was a sea of green with gains across the board.

There is lots of talk about whether the action in the indexes, bonds, solar energy stocks, Bitcoin, cannabis, and a few other groups are indicative of one candidate doing better than another, but that is mostly just emotions at play. The reality is that market conditions are in pretty good shape, and momentum is carrying stocks higher. 

A contested election or a Democratic sweep could upset the apple cart, but any other outcomes are likely to be met with a sigh of relief that the animosity is finally resolved, at least for a little while.

Hopefully, we’ll have some election clarity by the opening bell on Wednesday. If we do, then the Fed interest-rate decision and the health of the economy will quickly become major concerns again.

There will be much speculation in the next few months about what stocks will benefit or be punished due to the election results, but that isn’t quite as clear-cut as it may sound.

It is going to be a late night tonight, but the market will be quite happy to move on to some other issues.

Have a good evening. I’ll see you in the morning.

At the time of publication, Rev Shark had no positions in any securities mentioned.