Still Irrelevant, Despite All the Blather

 | Dec 11, 2012 | 1:19 PM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


After eight sessions of flat action, the iShares Russell 2000 Index (IWM) has broken to the upside. The most interesting aspect of Tuesday's action here is that there's really no news to account for it. There have been no fresh developments on the fiscal-cliff negotiations, for instance -- but market players may be optimistic about a friendly Federal Reserve announcement, which is scheduled for Wednesday.

The big problem for the bears right now is that, until we are closer to the fiscal-cliff deadline, there won't be any downside action related to these debates. There isn't yet any urgency to the negotiations, so no one is taking any of the politicians' comments seriously. They are posturing and trying to create some pressure through the news coverage, but the market hasn't registered any reaction that lasts longer than a few minutes.

Keep in mind, as well, that the politicians are eager to head home for the holidays -- which means the real deadline for an agreement is probably Christmas Eve. If there is no deal by then, it'll mean a substantial rise in the chances of going over the cliff, so it's at that point that I'd start looking for the market to react negatively.

Still, this two weeks away, and until then there is little potential for negative news -- and that is what's keeping a bid under the indices as money managers to try to pick up some performance. This will change as Christmas approaches, but at the moment it's the bears who have to worry.

Columnist Conversations

Spent a good amount of time with PayPal CEO Dan Schulman this week...and came away fully understanding why thi...
Has quietly taken a mini beating over the past few weeks. Might be worth a look on Monday given everything tha...



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.