It was also another reason to recognize why common sense is an important part of the process for an opportunistic trader.
While the media had all but given up on the chance of a fiscal cliff compromise, it has always been reasonable to expect (and the market responded to) a likely 24th-hour agreement on Sunday or Monday.
That said, the devil is in the details, and my best guess is that a patchwork deal that will result in a $300 billion fiscal drag seems the best guesstimate.
The Republicans will likely blink on taxes, and there will be some modest spending reform from the Democrats.The rest will be kicked down the road during 2013.. The key issue is whether this is "enough" -- enough to engage the corporate sector in hiring, building inventory and expanding fixed investment plans. I really appreciate you reading my Diary today, and I hope it was helpful in your navigation of the market. I am "pooped," but I will see you bright and early tomorrow! As an aside, the S&P 500 index closed at 1418 -- amazingly only 3 handles from my "Fair Market Value" calculation, which has been in place since September. At the time of publication, Kass had no positions in stocks mentioned.
Originally published on Thursday, Dec. 27 at 10:05 p.m. EST. For those who are technically inspired, we can see from this Yahoo! Finance chart that the price of Ford's (F - Get Report) shares face a lot of overhead supply at these levels. I would expect the stock to pause in here and a build a more meaningful base before it makes a move higher in 2013. At the time of publication, Kass was long Ford common stock and calls.