I wish I could write about some new and interesting developments in the market action today, but it was just a continuation of what we've had for eight days now.
We have generally positive action as market players remain optimistic about a fiscal cliff deal, but the action is relatively slow and remains contained. It certainly isn't bad action, but it leaves the impression that everyone is waiting for the big event before they really commit to anything.
Although Apple (AAPL) continues its recent struggles, breadth was pretty good and we had some decent action in biotechnology, precious metals coal and commodities. That may be due in part to some optimism about the upcoming Fed interest rate announcement. The FOMC issues its interest rate decision at 12:30 p.m. ET on Wednesday, which is then followed by a Ben Bernanke news conference.
Although the market hasn't seen much of a boost lately from QE, talk there may be some potential for that in the next couple days. But the fiscal cliff issue will continue to overshadow everything and we are likely to remain trapped in this tight range until there is some news of real significance.
The good news is that there are some individual stocks moving fairly well, but it remains a market for flippers and aggressive trading. The risk of being caught by a major news event is high and until that changes there isn't much choice but to trade small and fast.
Have a good evening. I'll see you tomorrow.