After two weeks in New York City and Philadelphia, I have returned to my sweet home state, so glad to learn that my sweet Michigan may end up playing a decisive role in tomorrow's election. It is very clear that Wall Street wants a Hillary victory, not so much because they love her so much; they don't. In fact, they expect that she'll probably be a thorn in their side for the next four years. On the other hand, she does represent stability and predictability, two things the market desperately craves and that investors are quite certain they will not get from Trump.
So as the polls began tightening after I left, the market began an historic losing streak as a Trump victory now loomed as a possibility, all of this dramatically intensifying when Comey decided to reopen the email investigation just a week before the election, something the Republicans cheered as justice for all, and the Democrats jeered as a blatant political ploy to undermine what had been an almost surefire win. The nine day losing streak was so dramatic it was deemed the longest consecutive downturn in either 35 years or 90 years depending on the source. That all suddenly changed Sunday when Comey once again cleared the Democratic nominee and the market responded Monday morning with great enthusiasm with the Dow turning in its greatest one-day surge in 8 months and the VIX "nervousness" index its lowest in four. The Democrats may still be nervous about a possible Trump victory but apparently Wall Street is not, not anymore anyway. Volume has been strong. However, if the last two weeks were an historically bad downtrend, we ain't seen nothing yet until the bath we take Wednesday if the election does not go as the pundits expect.
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