One Man, One Vote

While over the long-term, the fate of the market does not rest on the
Presidency, there are likely to be short-term effects.

As I stayed up into the wee hours of the morning to see if my man would take
home the prize, I followed the futures market. By watching an overnight chart, I
could easily see who the bulls were cheering on. The last red bar on the left is
what happened when uncertainty returned. Take a look at the
five-minute overnight chart of the futures. Amazing. Personally, I’m voting for a 50-year bull market.

Oracle
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, mentioned as a short in Trading The Open, continues to
move lower. Remember to trail your stops.

As for other market internals, the SOX is down roughly 3.60% and the Nasdaq
futures were halted when they went down lock-limit. They have reopened already
and have moved even low, but not much.

Today’s Watchlist: 
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Siebel Systems
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, in the
software group, has been one of the best stocks in term of patterns. It often
sets up to nicely to help us choose our entry points. Wednesday, it finds itself
in the midst of a new chart formation. It has formed a bit of a high level
W-formation.

With resistance near 120 now tested
several times, it has established a breakout level for us to watch. Set your
alerts near this key level and watch for a breakout. Ideally, any move will be
backed by heavy trading

In the bigger picture, there is also an
established trendline which the stock has bounced off several times over the
course of the last few months. Thus, should the stock be unable to break out from
the near-term formation, we will monitor it for a bounce off the trendline.

Currently, the intraday chart suggests that we should not expect
a breakout today. Nonetheless, I keep Siebel on my permanent watchlist, as it
often sets up for nice daytrades.

 

Until later,

David
Baker