Friends
Stocks continue to fall as the wrangling over the fiscal cliff continues. From the September highs, we have now seen a more than 1000 point drop in the Dow and about an 8% drop in the S&P 500. As we indicated, the markets will cast judgment on the politicians and will continue to turn up the heat until a suitable resolution is reached. Sentiment is growing increasingly negative (which we actually like), and shares are becoming much more attractive as prices decline. We’re looking for entry points, but are trying to be as a patient as possible.
For the day, the Dow Jones Industrial Average was down 184 points to close at 12,571. The S&P 500 is down 19 points to finish the day at 1355. Gold was down a fraction to trade at $1724 per ounce, while oil was up $.82 to trade at $86.20 per barrel WTI. From a technical standpoint, a lot of damage has been done as we take out one support level after another, but violent reactions could lie ahead (particularly to the upside).
With all the goings on in the Middle East, and President Obama’s tough talk at today’s press conference, stocks were up against it all day. We’ll see if buyers are willing to step in soon, but the news flow seems to be making that very difficult at the moment.
Have a nice evening everyone.
