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Thursday, October 18, 2012

Models Showing Limited First Day Post Debate Bounce for the President

Throughout the evening and much of today, the twitter world was talking about the big bounce President Obama was getting in InTrade markets.

Our models show a slight uptick for the President, but the question is whether it represents a reversal of the trend or simply a pause in Mitt Romney's momentum.

Prior to the debate, our macro model showed the President with a 62% chance of re-election. Our state based micro simulation model pegged the President's electoral college advantage at 282-256. The most frequent outcome of the simulation was 275-263. Twenty four hours after the debate, the President's probability of victory on our macro model has increased to 65%.

Our state based micro simulation model showed the President's advantage in the electoral college at 284-254 -- a gain of 2 electoral votes since the debate. The most frequent outcome in our simulation was Obama winning 281-257.

The key question is whether this is a new inflection point in the race or merely a pause in the prior trend toward Romney. Overall, we would characterize the markets as giving the President a modest, but small gain post debate.

Our Senate simulation model continued to remain quite steady and projects Republicans with 49 seats. The range using our various pricing scenarios is 48-50.

You can see our charts on electoral vote distribution and Senate probabilities below.

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