The markets are completely on a knife-edge as illustrated by many bull-flag patterns that are behaving indecisively and OVIs that are hovering near their neutral lines.
The message is a very definitive “Wait for the fiscal cliff drama to play itself out”. Whatever is agreed – or not agreed – we have to let the market decide how it’s going to react, and then we can be clear about our next step.
Remember, the way we approach the markets is to be as sure as possible before we put money at risk. Right now it’s a 50/50 toss-up what will happen, and that’s not good enough odds for what we do.
It’s funny because this time last year the markets were poised for a fantastic run. No such luck this New Year, so you may as well relax and have fun!
Wishing you a very Happy New Year and looking forward to nailing many great opportunities in 2013.
All the best
Guy