They've got to pass something..anything.
The US Congress and Senate must pass something to avoid a nosedive in worldwide equity markets. (Duh.) It really doesn't matter what it is. As I write this on Saturday afternoon, DJIA futures are down 200+ points according to the Wall Street Journal. What does seem certain is that a "grand bargain" is out of question. So the question will be whether or not whatever agreement is reached is enough to satisfy the markets. I purposely keep this blog a-political so I'll stop pontificating on the potential outcomes of the cliff at this point.
My bearish option position is alive again and a decline Monday would bring me from almost a total loss to a profit. Goes to show you how much faith in a system is important. Speaking of the RumWave, it is not displaying a buying opportunity. In fact, it favors a dramatic move to the downside. That being said, my daily scores are near the point at which they typically change directions.
The DJIA daily chart above shows me that there is still room to move lower, although it is not necessary. We are in an acceptable range to change directions.
The DJIA 4 hr chart also shows room to move lower.
Above is a chart of the Russell 2000. I've been keeping a close eye on this chart because my bearish option position reflects this index. The small caps have been quite stubborn in their willingness to decline.. which has been a bit frustrating for me.
TSP / 401k / IRA: Safety
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GOOD LUCK NEXT WEEK!