It is no surprise that our half day of Christmas Eve trading was unremarkable. Volume was extremely light, breadth was weak and the indices drifted lower. Market players had little interest in buying especially since there are no signs that any progress will be made on the fiscal cliff deal during Christmas.
When we come back to work on Wednesday the focus will continue to be on the fiscal cliff. If there is no progress we will continue to see dismal trading. There just is no edge in doing anything until some progress is made on that issue and for many people the best move will be to sell and harvest gains and losses for tax purposes.
I would much prefer to be more upbeat but no matter how much I dig I'm just not turning up any decent action. While we aren't see much buying interest, we aren't see any really aggressive selling either as the bears worry about being caught by a news surprise just like the bulls.
Once again I wish you Merry Christmas and Happy Holidays. It really is an ideal time to focus on family and friends rather than a market that is offering little. Have a great holiday. I'll see you on Wednesday.
