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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (42684)	12/28/2012 7:40:02 AM
From: Vendit™	1 Recommendation Read Replies (1) \| Respond to of 222101

I am not going to post a chart this morning but will share my opinion with an overview of what I see. All sell signals are still in place and the $SPX. Bottoms are almost always marked by a daily candle that is shaped like a hammer and that is what I see for yesterday. The question in my mind is why is the daily candle going against all other technical and fundamental indicators? The sell off yesterday began to turn positive when the republicans announced that they will return to DC. What does that mean? If anyone thinks it means that they are going to roll over and let Obama take us into an even more social economic condition you are wrong. If you think that republicans are going to agree to higher taxes on anyone you are wrong. If you think that Obama will agree to anything that does not raise taxes on some tax payers you are right but he will not get his way. Republicans are in a position to control the debt ceiling debate and outcome. I do not think that the daily candle formed yesterday is based on anything other than uniformed and misguided expectations. I believe that the solution to this problem is far away and even if there is some sort of short term stop gap measure that is agreed on and put into place, that will be viewed as a negative by the markets. I agree with GZ that we “may” see a short term pop up at open and a flat to slightly down closed. The house will not be back until Sunday and Monday is not much time to find a permanent solution much less a short term stop gap solution.