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Sell-Off :: Day 2

I've had some people ask me if the 10% sell-off in the stock market since the election 2 days ago is a reaction to the results. My answer: No. The real reason is that there are some big hedge funds thought to be caught up in the big investment fraud case in Minneapolis that hit the courts yesterday.

Here is the link if you want to read about it:

http://www.startribune.com/business/30631384.html

Just copy/paste into your browser.

I think the markets want to give our incoming government the benefit of the doubt. Its just really bad timing that the two things have happened coincidentally. This has also given so other hedge funds some cover to liquidate assets after the recent rally off the lows as beginning of month redemptions are starting to come in.

Just hang on. The tell here will be if we get a higher low than the previous low which will set us up for a higher high than the most recent rally high. That is a sign that the markets are healing and going higher in the intermediate term.

Mark