The Republican platform is very negative short term for the market. This talk of hard money, getting rid of Bernanke, tough talk on China is all very negative for the market. Contrary to popular opinion, the market likes Obama or more specifically Ben Bernanke and the anticipated Republican surge could make the markets very nervous. All you had to do was watch the action today when CNBC reported that Romney would not reappoint Bernanke. We are lightening up and adding to our short positions.
If the Democrats start to regain their polling advantage after their convention, the market could set up for a major rally into the fall. It should start to get very interesting.