The markets have been weak these past few days. That’s right, weak, even after QE-Forever has been finalized. Considering no bad news was able to move the markets lower, what gives?
Notice the weakness really began after the Presidential Debate?
As you know, the Obama/Bernanke/Geithner Ticket is the one that promises endless spending, entitlements and bank bailouts, to infinity. Romney is the guy who will supposedly ”get our fiscal house in order.” Yeah, right. But that is what the market believes at this moment.
So weakness is a product of some smart money profit taking before the end of the Fiscal Year at the end of this month. Plus some hedging, if you can believe that, just in case.
And as for Apple, above $700 it needed to be re-balanced (ie. lightened up on) in big portfolios. Plus there is some issue with the Mini margins. They will suck. Bottom line is that the stock will not go quietly with a huge swath of support in the 580-620 area.
As I’ve stated in the past, the only way Romney gets elected, even now, is if the stock market cracks wide open a few weeks before the election. And the cracks are forming.