Debate Jitters

This is presidential debate jitters.  Sure, we have Deutsche Bank weak but the main source of the uncertainty is how the debate turns out.  And with most events where people are negative about, its sell first, and ask questions later.

The move after the post Fed euphoria was a last gasp rally before we go down in earnest on the presidential election fears.  Mostly the fear of Trump.  I don't believe it is warranted, but a lot of people with money don't like the guy, and are scared of him rocking the boat.  So they will reduce equity positions ahead of time.

It is a tricky market, the strong rally in both stocks and bonds fooled me post-Fed and I thought we would challenge all time highs, but it was a fake out.  We have entered a risk off time period that should last till middle of October.  I don't want to get too negative because I do think that risk off period will set up a post-election relief rally that should be substantial but first things first.  We need to get people scared ahead of the elections.  Look for more weakness in the coming weeks, but not a super high level of conviction due to end of year performance chase pressures that are always looming in the background.