Depends on Your Perspective

What one does on this last day of the quarter depends on your time frames.  The move trhough 1331 on the S&P last week has set the long-term framework for the 1120 downside objective.  That however is in the background as the question of a summer / election rallly looms as a question.  In a sense the market is in Washington’s hands between now and September 15th.  Various props are being placed in the markets path and will effect short-term direction. 

The fact that Obama looks like a landslide winner at the moment does not give much incentive to the Bush adminsitration to pull out the stops to try to get a big rally going.  For this oil industry based adminsitration this pushes the incentive between now and the election towards getting  one last shot at Iran, and thereby set the stage to place $ 150 hedges for four years oil supply as they sit and wait for the 2012 election.  If something changes and McCain gains some momentum, then the incentives will adjust.

8:45 AM CDT