Market Update
As Hurricane Sandy makes media headlines around the world, the NYSE opened today for trading after being closed on Monday and Tuesday. However, just because the U.S. stock market is open does not mean that it's business as usual. Traders on the floor of the NYSE are having issues with cell phone service as it keeps cutting in and out. Trading volume and liquidity in the FX market seems rather light, as a lot of financial firms with physical locations in the New York City area are experiencing electricity outages, missing personnel, or both.
I'm taking caution and not putting on any decent sized positions as I wait for market conditions to stabilize. Also, it's extremely unlikely that any major trend causing events will occur before the presidential election, so I would probably be sitting on my hands anyway. There are some important U.S. economic data releases coming out on Thursday and Friday, but I don't know how much credibility I can give the resulting moves as they are occurring before the election. The whole aspect of how either candidate being elected would effect expectations about QE is still not clear. My speculation is that a Romney win may result in expectations of future hawkish monetary policy thus resulting in the market selling off. I'm guessing an Obama win would not cause the markets to go much higher - just prevent an immediate sell-off.
Events to note: once the presidential election is out of the way. The troika report that was purposely delayed at the request of Washington can come out (Yes, the U.S. is a member of the troika.) The latest on the release of the report suggests Nov. 11th or 12th. This report is what "everyone has been waiting for" and may have dire implications for Greece's future in the Eurozone. Also, there are (more) strikes planned in Greece on Nov. 6th & 7th. - I would put them on your market calendar because they have the potential to sour market sentiment very quickly.
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