My overarching view is that the markets have heavily priced in large QE2 by the Federal Reserve, a large Republican victory and an extension of thye Bush tax cuts. I believe markets will be disappointed by actual outcomes and will pull back from Risk-On trades. Until January, I expect Risk-Off Twist trading: lower equities, higher US dollar and mixed bonds.

November Schedule:

11.2 Midterm Elections

11.3 FOMC announcement

11.4 ECB and BOE meetings

11.5 US NFP and Unemployment

11.11 G20 meetings in South Korea

11.15 Lame Duck Session Begins

11.30 Jobless Benefit Extension expires

Mid-Term Elections

To take control, the … …READ MORE