Monday, November 03, 2008
My friend Tony Garcia and I have been watching this contract on InTrade with fascination today, and tonight I'm practically watching every trade.
For the technical broker side of me, here is a little more analysis on the MN Senate Contract. For Franken the first price floor is at 48.0 with an almost equally strong ceiling at 55.0. Going below 46.0 would take an increase in volume of almost 400%. For Coleman the strong price floor is at 47.0 but would only take less than a 200% increase in today's volume to reach that. There equilibrium in volume on the price ceiling is at 85.0. This all means that there is not much confidence in either of them losing, there is some resistance to the idea that Franken will run away with the race while there is not similar resistance to the possibility that Coleman can win early. So, the only thing that will be worth staying up for tomorrow night (the only suspense) will be the MN Senate race and the MO President race. MO is important only because it has gone to the winner in each
election since 1960 (12 in a row).
Tony and I read the InTrade results as being very pro-Obama, unlike the latest reports from Fox's Carl Cameron. �The Missouri contract has strongly moved towards McCain lately, which might account for the deployment of Palin to the state today.
Worth noting: �there's no action on Barkley. �It's a two-person race, and voting for Dean is as if you didn't vote at all in that race. �Exit question (to borrow an Allahpundit bit): �Has the loss of many US traders due to UIGEA caused InTrade to be less predictive? �Chris Masse is instructive: �Don't oversell.�