Held Hostage by the Fiscal Cliff

 | Nov 27, 2012 | 4:12 PM EST
  • Comment
  • Print Print
  • Print

Did anyone really think the market wouldn't see some dips on fiscal cliff worries? Senator Harry Reid did the honors today with comments about how there has been little progress, but he added that he is confident that the Republicans will eventually see that the only correct course of action is to agree with him, so he isn't too worried.

You can be sure we will have plenty of market-moving headlines in the days ahead. The market is going to be held hostage by these negotiations, and while I'm confident that there will eventually be a positive resolution, there is likely to be a high degree of volatility while we wait.

Another issue that will keep things choppy is anticipation of the tax-law changes coming in 2013. We are already seeing some special dividends, and many market players attributed the vicious selling in Apple (AAPL) to a rush to take capital gains before the rates went up. That is going to be a theme to watch for in other names that have had significant advances in the last couple of years.

The bottom line is it's a traders market. There are some opportunities in individual stocks, but we can't trust momentum will be sustained and we have to keep time frames short. If you stay selective and disciplined, you should be able to bank some coin while waiting for the politicians to move out of the way.

Have a good evening. I'll see you tomorrow.



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.