Over the Cliff We Go

 | Dec 27, 2012 | 10:43 AM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

joe

,

snts

Sen. Harry Reid just made it very clear that we are going over the fiscal cliff. In his typical unhelpful style, he made sure to blame Speaker John Boehner and said that there was no bill forthcoming in the Senate. The only real chance of a deal is if the Senate could pass something, but that isn't going to happen now.

The big question is how the market will handle this news. We have been living on hope for some sort of deal, although there has been increased nervousness the past few days. Will market players continue to provide bids while waiting for the politicians to start acting like adults?

Selling is picking up as the market starts to understand that the fiscal cliff is the next step. I have a few long positions but I am heavily in cash and not doing much. I did start a position this morning in St. Joe Co. (JOE), which is a play on Florida real estate development. I also added biotechnology stock Santarus (SNTS), which has recent insider buying.

There is no reason to buy now as chances for a short-term deal appear remote.

Columnist Conversations

Weyerhaeuser (WY) is seeing further weakness after penetrating the channel support I noted yesterday. It looks...
Blow off highs tend to take place on significant news days. In recent years, the monthly employment report ha...
Market trying to hold on to minor gains as we head into the close. Equities have been in a pretty narrow trad...
Shares near $4 and a buyer paid 50c for nearly 1500 Sep 5 calls to open a new position 25% above spot. Earning...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

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.