It’s almost like the Republican/Demcorat Regime guys couldn’t stand the fact that the markets weren’t/aren’t panicking over the fiscal cliff so that you can feel like they “saved us” when they finally pass some meaningless, fait accompli resolution to this crap. So today they finally figured out how to get some market response and there was even a “scary” very early pre-dawn pre-market flash crash in the futures this morning (not an accident, IMHO) to get everybody even “more scared” this morning.
That said, it looks to me like the path of least resistance is now lower for the near-term, as the R/D Regime clearly wants to try to hold this market hostage and appears ready to keep the “you should panic over this” push going. This isn’t what trading and investing is supposed to be about, but it’s why I created the concept of “Revolution Investing” because we’re truly living through a economic and political revolution, even as most people don’t realize it yet, despite this kind of tyranny from our reps. Sigh.
At any rate, I think we probably need to focus on scaling into some of our shorts rather than trying to scale into more long exposure just yet. Yes, the markets are “panicky” this morning, but the DJIA, for example, is right now trading at the save levels it was Monday at 2pm or so.
Nothing’s changed in our overall approach here, but I think we might be in for some rough riding for a bit. Easy does it.