Monday witnessed another meeting between President Obama and House Speaker John Boehner, and Apple (AAPL) was able to shrug off some of its early negativity -- which has all given the market a positive tone. However, we are faced with the same issue that the market has suffered from for two weeks now: a lack of strong momentum. While we're seeing positive action, there isn't much aggressiveness, and the market tends to drift and overreact to minor news and rumors.
I have to admit, I'm a bit annoyed that I don't have more going on today. I'm definitely not bearish -- and, as I've been saying for the past week, this is not a market to short. The potential for a spike higher on a fiscal-cliff deal is just too great for me to take a bearish stance. If you are inclined to play the short side, you should be seeking strength on the news -- which may not last for long. The market won't go straight down if the fiscal-cliff uncertainty comes to an end.
I have a few things on my watch list for potential buys into the close, including Synergy Resources (SYRG), Cheniere Energy (LNG), Hovnanian Enterprises (HOV), Valeant Pharmaceuticals (VRX) and 3D Systems (DDD). However, none of these have the sort of volume I want. They may follow through as market players try to add long exposure, but they don't technically exhibit the sort of momentum that makes me want to load up. We'll see how these stocks look at the close.
