ZT: mid-term election on stock market

maomi

ZT （说得不错，合俺的意。）
来源: chuckchuck 于 2010-10-13 17:57:34 [档案] [博客] [旧帖] [转至博客] [给我悄悄话] Email   字体：调大/调小/重置 | 加入书签 | 打印 | 所有跟帖 | 加跟贴
。。。

Finding the catalyst for the market's recent gains isn't obvious. Some market watchers point to the Federal Reserve's recent hints at quantitative easing, but there's no consensus on whether that's a wise strategy.

Earnings season has been helpful, as companies have been topping estimates. Before Wednesday's open, JPMorgan Chase (JPM) announced better-than-expected quarterly results. But the bank stock fell 1% in fast trade.

Another factor is the November election, which historically gets priced in before the event.

But while expectations of a more business-friendly Congress could be helping stocks now, it's not clear how long the boost will last. The past five midterm elections have led to rallies after the election three times and either declines or choppiness in two cases.

In 1994, the Nasdaq ran up about 12% from June to late October, then fell 6% in the four or five weeks after the election. The Nasdaq then rocketed 48% from mid-December to mid-September.

Ultimately, news isn't nearly as useful a guide to the market as the market's current price and volume action itself. Right now, the market action is solidly bullish.

yuxiaohong

sell stock before Nov 2, the election day. Right?

greatinter