They Expect Results...

"And, Lenny, you will have saved the lives of millions of registered voters!"
--Dr Peter Venkman (Ghostbusters)

One thing surely contributing to the more favorable tone to the tape is market participant's anticiption of another round of monetary and fiscal stimulus. As Democrats sense trouble ahead of the November midterm elections, the reasoning goes, they will marshall their majority influence to jam thru new stimulatus programs in order to turn voter opinion.

Being a discounting mechanism, the market has been busy factoring in the chances of that intervention and its success.

My sense is that this is setting up a nice fade trade as participants figure out, once again, that any such stimulus will bring limited, if any, positive benefit.

Technically speaking, major indices such as the Dow are starting to sport that bearish head-and-shoulders look on multiple time horizons.

It also has me looking to start unwinding my small basket of stocks after this recent ~5% upside move...

position in select stocks