Wall Street May Be Approaching Some Speed Bumps
The market's remarkable six-week rally will be put to the test in the next few days by the much-anticipated midterm election and the Federal Reserve policy statement. And if that weren't enough to make things interesting on Tuesday and Wednesday, the October employment report is slated for Friday.
"The most commonly accepted [election] scenario is. . .gridlock in Washington, which the market likes," says Ted Weisberg, president of Seaport Securities." That's the anticipated scenario, and we could actually see the market sell off because that's pretty much baked in."
Indeed, apart from a better-than-expected showing from Republicans, there may be no upside catalysts this week, Weisberg says. He doesn't see anything coming from the Fed or latest jobs figures surprising the market -- at least not in a good way.
And besides, when the week's hoopla dies down, the reality of the situation will still be the same, says Weisberg. "The bottom line is the U.S. economy continues to be sluggish and go nowhere fast."
For more on Weisberg's view from the floor of the New York Stock Exchange (NYX), see the video above.