Dancing on Fiscal-Cliff Rhetoric

 | Nov 29, 2012 | 1:59 PM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

hgsh

,

cali

Once again the indices danced around on comments from politicians about the fiscal cliff, but each time we've seen less and less of a reaction as market players come to realize it is all meaningless posturing. The market is optimistic that a deal will eventually be done, and it is smart enough to realize that the interim comments aren't indicative of the actual progress.

Nonetheless, there is little else driving the market right now, so we are going to see reactions to any and all news about the fiscal cliff. At this point it's probably best to not overreact, but it sure can mess up a trade if you are caught by the wrong news at the wrong time.

I'd like to provide some profound insight here, but it really is just a market for short-term trades and little else. The market is a bit technically extended, but the bulls have the momentum and small-caps are acting well. It is a good time to stay focused on individual stock-picking.

I'm looking for more speculative action in some of the lower priced "junk" stocks. China HGS Real Estate (HGSH), for example, has moved very nicely. I also have China Auto Logistics (CALI) on my radar here. Action in those sorts of stocks tends to occur when the big picture is muddled, and when traders are anxious for some action. I see little else to do, so I'll be looking for some trades in the junk names.

Columnist Conversations

Under Armour has been fading since the opening bell. The stock is off just shy of 1.6% as it extends Frid...
I wrote on RMP last week that I thought CVS Health (CVS) was too pricey. Today independent research firm Trefi...
Shares of Lockheed Martin are pushing further into new all time high ground. LMT is up just shy of 2% a...
We are feeling the pain today with our long GILD calls, these things happen and is why we A. Do not oversize ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

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.