Sounds like a great T-shirt logo. Except it is the sad truth. Now that the election is over, America begins its next chapter with many of the same problems looming. First and foremost is the “Fiscal Cliff” we are facing as a nation.
For those of you wondering what the term “Fiscal Cliff” means, it is the pending expiration of tax exemptions and also cuts in spending for many government sponsored programs. Many of this will occur on December 31st, 2012.
So what does this mean for us as traders? The day after the election the initial knee jerk reaction was just as expected. We saw a large gap down on many stocks and the markets themselves. But as I mentioned in last week’s article, we may see a shallower drop in the equity markets with the reelection of the President.
Looking at the daily chart of the S&P 500, we can see price was testing a… Continue Reading
