4 More Years of Same

With Obama re-elected, the market began to grasp the concept that nothing is going to change. There will be more fence sitting, more dis-agreements and in all likelihood more downgrades that are inevitable with unsustainable debt limits. The market swooned accordingly and entered into oversold territory on Thursday with a drop below the 1380 level. Friday bounced off an intra-day low of  1367 partially confirming our thoughts, with Apple being the main protagonist. We expect a knee-jerk bounce this week, as many market commentators are turning bearish. We bought 3 contracts this week at 1387, and will place an order to buy a further 5 contracts on the market open at 1380. We will set a stop-loss at 1363 and a target price of above 1410 where we will take profits.