UK Elections and the markets

I consider that the UK election results are the reason why markets are bullish today: Eurosceptics in UK have been wiped out and it is all clear that a Poll on a possible Euro zone exit will go in favor of Staying in Europe. This is a second relief for the financial markets, after the bunds reversal of yesterday. This gives an "all clear" signal fro the European cash to be reinvested. This means is why the USD is pushed higher today, why US Treasuries and US equities are bought.

VIX EV Pattern also reversed below its average TEV.



Pascal

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Would you expect any follow through of this move? Either Euopean or UK stock markets did not appear particularly oversold before. Also in the US market, IWM and the Bonds attempted to close the upgap on Friday.

Thanks

[QUOTE=77seas;29808]Would you expect any follow through of this move? Either Euopean or UK stock markets did not appear particularly oversold before. Also in the US market, IWM and the Bonds attempted to close the upgap on Friday.

Thanks[/QUOTE]

Yes, I expect a follow through. This is why I bought more on Friday.
Of course, nobody really knows. We could as well have a pull-back.
However, my money is on the long side.



Pascal