Focus Remains on the Fiscal Cliff

 | Nov 29, 2012 | 5:15 PM EST  | Comments
  • Comment
  • Print Print
  • Print

The market managed to build on yesterday's sharp intraday reversal, but not without nervousness about the fiscal cliff. Breadth was healthy, leadership came from big-cap technology names and there was strength in small-caps. But the focus remains on the fiscal-cliff negotiations, and the market keeps reacting to every new development or comment.

The reality is that there isn't going to be much progress on a solution for a while, but the market dislikes uncertainty so it seizes on minor news events. Unfortunately, it looks like this is going to continue for a while. The market anticipates that a deal will be done, and will probably continue to price it in with occasional hiccups along the way. We may even end up with a sell-the-news event down the road.

For now, it is a market for individual stock-picking and quick trades. There isn't much edge in building longer-term positions, and with volume and volatility sedate, it's hard work to find trades. That is all the market is giving us, so that is what we have to focus on.

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

Columnist Conversations

The bearish star cluster on the Starbucks (SBUX) chart that I highlighted last week preceded price action this...
Ford is working on its third straight gain following two days of steep loses to start this week. At this...
Market is holding on for gains for now but think Doug Kass is right and could see some decent profit taking by...
I have a full blown article surrounding the U.S. Retail Sector coming out on soon, but for now let's just lo...



Columnist Tweets


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.