In major cities across the US that have previously dealt with politically motivated rioting, windows and doors are being boarded up.
This is a real life reflection of the wretched state the US political system finds itself in during the current election cycle.
In major markets across the globe, investors are participating in the financial market version of boarding up your windows and doors by either paring back exposure or hedging risk off the books completely.
For a demonstration of what hedging risk off the books completely all you need to do is pull up a chart of the index put/call ratio for today.
The mother of all spikes, seemingly out of nowhere.
This is 100% institutions wanting to tame whatever volatility they feel will arrive in the days ahead as a result of a seemingly unpredictable election cycle.
At the very same time, the VIX and VVIX both remain highly elevated as they have been for months in anticipation of the very same thing that index option traders are attempting to front run with today's put buying frenzy.
In this past weekend's edition of Turning Points the case was made for the election tomorrow providing clarity and simplicity, with what will likely be a very clear result, followed by an extremely simple methodology of taking advantage of the investment environment that takes shape in the weeks and months ahead.
All of this hedging off of risk will have to be unwound in somewhat dramatic fashion should the worst case scenario everyone seems to be expecting not occur. In other words, a clear result, without any surprises in the direction of the current odds on favorite.
This isn't necessarily an area to pussyfoot around.
After all, the NDX has been range bound for what? Close to six months now.
Bitcoin has been range bound for eight.
The coil is about to spring as the markets breathe a sigh of relief, with the election cycle behind us and nothing but clarity ahead for at least some weeks and possibly months.
We are up to 105% long.
Risk on.
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