It is not obvious at all to me that the market is telegraphing any kind of "win" for Obama or Romney:
1) a weak dollar, many argue, implies a win for Obama, since the Fed policies of QE would likely continue; (Read more: Did Wall Street Just Give Up on Mitt Romney?)
2) strong gains in defense stocks, as well as general weakness in hospital stocks, would argue for a win for Romney. (Read more: Traders Bet on 'Romney Stocks')
What the market DOES seem to be saying: the two biggest concerns for the market may be resolved. The markets seem to be telegraphing that:
1) there will be a clear winner tomorrow, and that the election will not drag on for months in litigation; and
2) the "fiscal cliff" issue can be resolved sooner rather than later.
On the fiscal cliff, two things stand out:
1) the poster child for sequestration, Lockheed Martin, is sitting at a 52-week high today; LMT has publicly stated that sequestration (mandated cuts in spending) would be a serious problem for them
2) options on the Volatility Index (VIX) is not showing any appreciable steepening going out several months — that is, it's not any steeper than it has been in previous months. This implies traders don't think the risks are dramatically higher.
—By CNBC's Bob Pisani
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