Such a fun week, wasn't it? The big election came and went on Tuesday, then the market got throttled on Wednesday and Thursday. Friday was a day of rest, as mind readers and the Kreskin's of the world tried to parse through sound bytes from Obama and Boehner to try and decipher what they "really meant" to say. I think we all know by now that Democrats and Republicans will always hear what they want to hear and see what they want to see.
The election further validates my belief that pundits in any field are for the most part useless. Karl Rove will be using his whiteboard as a Walmart greeter and Dick Morris will be hawking more shitty children's books on Fox, hopefully proceeds will go to teeth and a better lid. Gingrich will continue to sell bad DVD's that double widers in the south buy in size for friends and family.
Idiots like Chris Matthews and Savannah Guthrie will continue to be obvious.
Life will go on, as TV anchors still have their jobs and will continue to opine every evening. The Hannitys of the world will start their 2016 countdown, and the mainstream media will continue to fall at the alter of the left. It never ever changes and it never ever will. They all bank big salaries and will continue to pull at your partisan heartstrings if you let them. It's your valuable time, you can choose to watch or not. I will not. I have enough things to induce high blood pressure levels.
Which brings me to the stock market. By the way, the fiscal cliff has been an issue for a year, so don't be surprised. The election eclipsed everything, and now we have to deal with it, even if Carrot Top won as a write in.
I watched Boehner's ditty on Friday and he looked pissed. I watched Obama too. Although Obama said he was willing to play in the sandbox with the right, I sensed an "I own you bitches now" tone in his voice. I would probably have the same tone after a knock down drag out war for over a year.
All the intrigue of a Tom Clancy novel will hit all the front pages next week, as we have a sex scandal involving a four star general, who happened to run the CIA. Fold in some Beghazigate, and the media, (politcal & financial), will have enough to keep them occupied for months. Top it off with a Congressional investigation and it should be gobs of fun.
The bottom line is that the troglodytes that we call our elected representatives on both sides of the aisle have to figure something out over the next six weeks. If they act like babies just to prove a point, unemployment jacks to 9% and higher quickly. Neither side wants that.
It's a very tough call here on the stock market side of things. What I think is extremely important here is to block out the noise. I say this all the time. When things become insane the best thing to do is keep it simple.
At the end of the day you buy oversold and sell overbought conditions. We were overbought three weeks ago, we are starting to get oversold now. Ignore Europe, we've seen the riots. They can bite me, but watch hints from Washington, as they will telegraph what they want you to hear. They always do.
Bullish through year end, but wearing Kevlar.