Based on my discussion in last night's blog on the broad stock market, I am going to take profits and unload (cover) my short position in this market today. This will leave us on the sidelines of all the markets we trade which is probably a good thing as the U.S. mid-term elections are tomorrow. There is an enormous amount of media focus on this particular election as partisan divisiveness in this country has been described by some analysts as being near civil war levels. Republicans are as rabid about maintaining their current congressional power as the Democrats are about overthrowing the GOP. There will be intense emotional backlash no matter which side wins. A sideline position in financial markets until the dust settles after the elections is probably best to avoid any potential short-term volatility. We are getting out of our short broad stock market trade with a 6% profit. If this market turns down again, we will re-enter a short position, but if it turns out that the Oct. 29 lows are the start of a new medium-term cycle, we will look to go long.