Other than a little volatility on the Fed's interest rate policy, it was another very slow week of trading as we wait for news on the fiscal cliff problem. Nothing has changed in that regard. There were a few meetings, some name-calling, but no progress.
The market is still optimistic that a deal will be made, but it is growing weary and impatient; we saw the consequences of that today as the market stumbled around with a negative bias. Apple (AAPL) was the primary villain, but it was just another lifeless day with limited trading opportunities.
My big concern is that if there isn't any progress on a fiscal cliff deal by the end of next week, more market players will grow nervous and head for the exits. Although some economists say we won't suffer any real consequences if a deal isn't made until January, I don't believe the market is going to be very happy about the uncertainty.
I still feel there is a good chance we'll see some sort of agreement, but I'm just treading water in this market with a few small trades and a big cash position. My main goal is to be ready when conditions change, which is sure to occur fairly soon.
Have a great weekend. I'll see you on Monday.