If investors are still listening to CNBC and the talking heads on shows like Wall Street Week, they really just don't get it. For the past 4 weeks, a contrarian market axiom has slammed its powerful force against fund managers and day traders. The market will always do its best to make the most people wrong. In the week leading up to the election, there was an unbridled belief among longs that there would be a post-election relief rally. Historically, election years have been strong years for equities, especially during the post election period. Last year, it seemed like every day in November and December was an up day. It was simply mind boggling. Almost everyone in the US financial community believed that a strong November and December rally would ensue just like they did in the past 3 years. It was considered a God-given right.

What no one expected to happen happened. The presidential election was still too close to call after election day. What happened on Wall Street was totally opposite of expectations. The market sold off. In a big way. In a lengthy way beyond expectations (there we go again with the market doing things other than what was expected). At the close of Tuesday, November 7, the Nasdaq index was at 3415. One day later, the Nasdaq index was at 3231. In my eyes, that is the extent of the election effect. Yet, everyday since the election has been one whine session after another by the permabulls who had loaded up on the JNPRs and BRCDs ahead of the election rally, Thanksgiving rally, X-mas rally, etc. It's the election's fault. It's the uncertainty that killing us, blah blah blah. But upon practical inspection, there really isn't that much uncertainty. It will either be Bush or Gore in the White House. We knew that ahead of the election, and we know that after the election. In fact, they are both moderates who neither have the desire nor the mandate to push through anything drastic. The status quo is the mostly likely result. And that in the market's view shouldn't be too bad. Gridlock, what most people wanted, is what will mostly likely happen. And no, Bush becoming president will not save this stock market. He's not capable of adding fundamental value to these tech companies, plain and simple. Neither is Gore. If anyone thinks the Nasdaq has gone down 19+% in 3 weeks due solely to the election and Greenspan refusing to ridiculously ease, then they really aren't that bright. The tech stocks are weaker because fundamentals are deteriorating, the junk bond market shows it, the earnings show it, and the prices show it. Another reason why the tech wreck is continuing? Expectations.

Since the close on Tuesday, November 7, the Nasdaq index has lost 660 points, or 19.3% in under 3 weeks. At the close of Wednesday, November 22, the Nasdaq is at 2755. That is simply amazing. I didn't expect it. Almost no one except for the now-Einsteinesque William Fleckenstein probably thought it could happen. The Nasdaq 3000 support level finally broke, and the knife fell through the greedy hands of the day traders.