My No. 1 Concern Ahead of the Election

Everything is the financial system is linked. Yet... the media misses the thing that should be on every American's mind.

Action to Take: Markets enter the final stretch of election uncertainty with a refreshing undercurrent. The improving breadth in small caps suggests traders are positioning for opportunities beyond Tuesday's noise. After years of narrow leadership, growing interest in value plays hints at a market ready to turn the page and get back to fundamentals. Yet, with gold testing records and rising volatility, traders should keep their powder dry until we clear this week's gauntlet of election results and central bank policy. We’ll be looking for clues on future QE from the Federal Reserve this week.

Momentum: We have mixed signals as we head into a huge week. Treasury yields and the dollar are backing off their highs as weekend polls show the election tightening, while traders position for Thursday's expected 25 basis point cut from the Fed. There is typically a drift higher heading into these Fed announcements. But recall that the Fed meeting is delayed by a day as we await the election. We …