The idea of a Romney Rally is easy to comprehend. After all, Romney would be more likely to hold the line on tax increases, and more likely to get Republicans to solve the fiscal cliff crisis in short order.
An Obama victory means a gigantic battle over taxes, spending, and the debt ceiling coming at the end of the year, creating the kind of risks that the stock market hates.
But the idea of a Romney Rally happening between now and the election doesn't make logical sense.
The problem is that a Romney victory isn't going to feel inevitable unless the economy/stock market start to turn south between now and early November. As long as markets are going up, it's hard to see a total collapse on sentiment towards Obama.
People love to talk about "narratives" and the candidates' various problems, but look, the sense that Obama is going to win seems to be at a high-level right now (see: The Daily Beast on the possible Obama landslide), and not coincidentally, stocks have just made a several week high.=