STTG Market Recap Nov 7, 2012

The election results are in and Obama will lead us for the next four years. Despite the market expecting this result heading into the election, today’s market action was anything but expected.

The market had its worst day since June 1st. From Bespoke Premium,

So much for yesterday’s rally. With a decline of 2.2%, the DJIA is on pace for its fifth worse one day decline following a Presidential Election Day since 1900. The worst one day decline came in 2008 when the S&P 500 dropped 5.0% following Barack Obama’s election. Interestingly, while stocks have typically performed better under Democratic administrations, the five worst one day reactions to a Presidential Election all came following Democratic victories.

The only stocks on the rise today were health care related. Take a look below at these charts of Centene Corp (CNC), Tenet Healthcare (THC), and HCA Holdings (HCA). Caution should be noted as far as chasing these stocks after such steep moves off sentiment, however adding them to the watch list may be worthwhile.

This market has been a cash heavy environment ever since Apple (AAPL) started really started rolling over and that outlook certainly does not change today. REITs have performed decently, Homebuilders have been a bright spot, but beyond that there are only small pockets of success.

When market leaders notably top out and begin declining, inevitably it will take its toll on the overall market. Updated market indices below. Stay frosty (sharp) out there!

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