Stock Market Wimpy Election Indecision Precedes a Modest Closing Gain
Stock-Markets / Stock Markets 2012 Nov 06, 2012 - 02:23 AM GMTBy: PhilStockWorld
Courtesy of Doug Short writes: The day before the presidential election saw little conviction in the stock market. The S&P 500 opened lower and hit its intraday low shortly after 10 AM. It rallied for an hour into a fractional positive range, reversed direction until near the end of the lunch hour and then mounted a modest rally, with some indecision near the end, to close with a modest gain of 0.22%. The thin volume speaks to the lack of conviction.
Here is a 5-minute chart of today’s whimpy indecision.
In recognition of tomorrow’s big event, here is a chart of the index since election day in 2008. The S&P 500 rose 4.08% on the day of the last presidential vote. The index then fell 5.27% the following day and 5.03% the day after that. But since the last election day, November 4th 2008, the index is up 40.92%.
Just how weak was today’s volume? It was rather comparable to late August doldrums.
The index is now up 12.70% for 2012. From a longer-term perspective, the S&P 500 is 109.5% above the March 2009 closing low and 9.4% below the nominal all-time high of October 2007.
- Phil
Philip R. Davis is a founder of Phil's Stock World (www.philstockworld.com), a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders. Mr. Davis is a serial entrepreneur, having founded software company Accu-Title, a real estate title insurance software solution, and is also the President of the Delphi Consulting Corp., an M&A consulting firm that helps large and small companies obtain funding and close deals. He was also the founder of Accu-Search, a property data corporation that was sold to DataTrace in 2004 and Personality Plus, a precursor to eHarmony.com. Phil was a former editor of a UMass/Amherst humor magazine and it shows in his writing -- which is filled with colorful commentary along with very specific ideas on stock option purchases (Phil rarely holds actual stocks). Visit: Phil's Stock World (www.philstockworld.com)
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