Welcome to a new day and a new America. Senator Barack Obama made history by winning the U.S. presidential election and it was finally nice to see some energy in our country. Polls were packed, people waited in line for hours and America seemed to come together as we all look forward to the future. Not only is it a new America but it will also be a new Wall Street.
It was pretty much a given that Obama was going to win and the market rallied on Tuesday. However, European stock markets traded lower last night (their Wednesday) ahead of the expected soft opening on Wall Street.
Dow futures are down 101 points which means we are going to be starting the day off in the red. I had mentioned if Obama wins and if the Democrats took a firmer hold on Congress, the market could retreat.
We are looking at a triple-digit loss right off the bat for the Dow but the mood this morning is not one of panic and it doesn’t feel like one of those days where the Dow is going to tank. If we can keep the Dow to a under a 200-point loss within the first hour then there is a good possibility where could battle back by the end of the day. Then again, the market could sell-off but I think with the Dow doing some “back-filling”, it would be healthy.