Market stays in the digestion period.
The year 2013 came in with bang! After a fearful era of post election blues and Fiscal cliff which ultimately ended peacefully and we are still alive and together as a country- the market had to show some kind of enthusiasm and it did on January 2, 2013 with big gap to the upside.
Unfortunately you couldn’t trade it. It was great to look at it, but unless you came in fully loaded on Dec 31, 2013 during the height of Fiscal cliff turmoil you couldn’t have done much. Some of the stocks did go up and there are still some opportunities out there. GOOG and FB have showed renewed signs of strength while AAPL has become institutional dumpster child. There is still lot of selling going on. The whole set up is bearish from the big gap up on Jan 2 2013.
Fiscal Cliff was a lengthy spooky battle for December and most of the money sidelined at the time. People wouldn’t indulge risking when there is such a level of uncertainty and chaos. The daily parade of politicians on TV was a macabre drama for free. Every time a politician showed up the market spooked an went down some more. It did clung to each and every word uttered by the politicians in that nonsensical process. No matter how ridiculous that may look like now while looking back, but it took away something from everyone. It was a wasted opportunity and your ability to make money.
Holidays are a strange period anyway and the first unemployment report did nothing to lift the spirits either. Merely adding 155,000 jobs in the recovery is what you get when you have to use the word ” mediocre” It has been a mediocre story all these years anyway. The unemployment rate is still stuck at 7.9 percent and nothing less and may stay there for another 4 years. It is hard to tell. The economic recovery is anemic and pathetic and the markets are not thrilled about it and soon they may start fading this enthusiastic gap.
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