There is little doubt that the “ball dropping” in Times Square tonight will occur. The issue is whether politicians in Washington drop the ball with Fiscal Cliff negotiations. Thus far this morning, the market is enjoying a mild bounce after the plunge we saw late last week. Apple might very well have formed a triple bottom here, though it is tough to assign too much significance to what basically amounts to holiday trading.
I am probably not going to chase stocks up like RDN, though am keeping an eye on the likes of NFLX setting up. I am still watching the VIX for signs of a reversion after its recent spike higher. Nonetheless, news-driven markets can defy common sense. We have seen plenty of fireworks in the late part of the past few trading sessions. Headed into New Year’s Eve, let’s see if we go out like a lamb instead today.
