NEW YORK ( TheStreet) -- When I was a boy, the Ringling Brothers, Barnum and Bailey Circus would come to my hometown each year. Every time, the master of ceremonies welcomed us from the center ring with the words, "Ladies and gentlemen, boys and girls, welcome to the greatest show on earth." I was spellbound!
Today's version of this "distraction" isn't found in Las Vegas or at an expensive theme park. It's going on for a limited time only in the nation's capital, Washington, D.C. Like the circus there are "three rings."
In the center ring is our "master of ceremonies," President Barack Obama. To his left is the House of Representatives and to his right the Senate. Together they form interlocking circles of death-defying feats.
Inside the three-ring "circus" - Latin for circle -- for investors are the government shut-down, the debt-ceiling crisis and the start of earnings season.Using our powerful imagination, let's merge the three rings into one giant circle and what do investors have? Uncertainty! Uncertainty is the main ingredient in the caldron of market volatility and sinking investor sentiment. As the politicians dance around this circle of uncertainty, I'm reminded of the words of the late, great American poet Robert Frost in his poem "The Secret Sits." "We dance round in a ring and suppose; But the Secret sits in the middle and knows." While most of us dance round the ring of fiscal confusion, there are those who know "the secret" and are biding their time. Whoever "they" are, I'll wager a guess that their "secret" is worth a fortune.
How to Make Profits from This Three Ring 'Circus'First, realize that even though "the show must go on" we also know that "all good things must come to an end." Before you think I'm a Looney Tunes cartoon character, allow me to explain. Perhaps "the secret" is that the solution to Washington's three-ring dilemma is already scripted like a good TV drama or reality TV. This may mean there's more emotionally charged content to come. At the moment we're coming off two huge up days for the U.S. stock market. This market surge may be nothing more than a "commercial break" during the airing of "The Greatest Show on Earth," and if it is there may be a lot of drama and scary "reality" over the next few days.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts