|The Republicans won the U.S. Senate & the U.S. House and the market rallied smartly as the S&P 500 closed at an all time high (http://www.foxnews.com/politics/elections/2014/2014-midterm-elections).|
Despite the resounding defeat of Democrats nationwide, President Obama remained defiant: “Before the end of the year, we’re going to take whatever lawful actions that I can take...what we can do lawfully through executive actions.”
It appears the Nasdaq was not drinking the Kool-Aid like the rest of the market as most leading stocks closed well off of their highs and some even reversed to close lower for the day. In fact, the Nasdaq composite failed to make a new 52-week high and it closed slightly lower for the day while volume on this index expanded.
After a wild 3-week rally, the Nasdaq may be running out of steam here. For this reason, I sold all of my Mass Mutual funds today and moved to a 100% cash position for this account.