Tuesday, April 28, 2009
What the Weak Elephant's Stage Left Exit Means for Your Portfolio
Arlen Specter (AS), 79 year old elephant, switches to donkey party. POTC does not believe this development in itself changes anything, yet the ripple effect that may influence other animals to switch cages in the next several days will be very important to monitor as far as the political component of the PFF ratio is concerned. With AS, there are 58 donkeys in the Senate, closer to that tragic-magic 60-vote super majority for Obama's control agenda to choke capitalism as we know it. Yet the short-term technical reaction in the market is reassuring post news (S&P positive). Though we cannot make any definitive directional broad market call until the dust settles and we witness how the S&P reacts on close, POTC suggests aggressive traders overweight cash right here. Conservative traders have a mini conundrum until we learn whether more and what animals will switch their stripes. POTC suggests the relative strength or weakness in the broad market today and tomorrow will speak volumes. Where the smart/inside political money stands will be known in the hours just ahead with everything else being equal. The echos in the halls of Congress become reflected in stock prices after something like this occurs. So far, so good. 12:49ET S&P up 2 points. Capitalsit Pig Bob only hopes more elephants don't start making ASses of themselves...
Posted by The Call Team at 1:32 PM