Friends
As the politicians continue to make a mess out of the debt ceiling situation, the market has decided to weigh in and make its view perfectly clear. For the third day this week stocks fell, with the Dow Jones Industrial Average falling more than 198 points, about 3% for the week so far. The S&P 500 ended the day down 27 points to finish the day at 1304, just above the bottom end of our trading range (1300-1350).
It looks as if the traders, who had been fairly confident that something would get settled before the August 2nd date, are now beginning to wonder if they may have been wrong. There was enough anxiety in the marketplace to begin with, considering a slowing economy and never-ending problems in Europe. Now it seems traders are saying better safe than sorry.
In the meantime, we’ll monitor the theatrics out of Washington and begin to consider some very good companies, which had very good earnings, to see what bargains may develop as the anxiety levels grow. I know it’s scary, but that’s when you find the best deals. Be prepared for a lot of volatility over the next three or four trading sessions. Things are likely to swing on every piece of news.
Try to have a nice evening everyone.
