That'll set the stage for a correction that may include some lackluster earnings reports from stock market superstars like
Are you ready to "buy the dips" in these kinds of companies or the ETFs that represent the sectors each is a part of?
Between the political deadlock (or, call it "gridlock" if a temporary solution is announced before the markets open Monday morning), the debt-ceiling quandary and earnings reports from a whole host of big companies the week of Oct. 14, the opportunities should be multifaceted!
Although I avoid predicting how a "circus" will conclude, I'll venture a guess that if we had seen a D.C. deal over the weekend, (there's the trick) the market will continue its current 2-day uptrend and return to near all-time highs.
If that doesn't happen in the next few miracle minutes, I agree with one analyst who said, "Otherwise we'll probably fall back to 1,650, possibly further, depending on how rancorous the disagreement is." This is a win-win scenario for us.
Unless you're totally unexposed to the stock market, if it keeps skyrocketing higher, we'll see many of the stocks we own getting as high as a tight-rope walker underneath the big-top's ceiling.
Yet, if we're about to see that "fall back to 1,650," we'll have a chance to buy some great names we should have already owned such as
Johnson & Johnson
(JNJ - Get Report)
(PEP - Get Report)
Johnson & Johnson and Intel step into the earnings "ring" on Tuesday; Johnson & Johnson before the market opens and Intel after it closes. Pepsico will "strut its stuff" on Wednesday before the market opens.
If you missed the chance to buy some Pepsico last Tuesday at $78.86 (9.4% below its 52-week high of $87.06) you may have another chance to do so and lock in a dividend yield-to-price of 2.88%. I'm not suggesting the share price may not fall farther than $78.86, but it's a good price level to begin accumulating.