The Market Needed This Shake-Out
The bad news was that the market took a hit on the fiscal-cliff news. The good news was that the market held steady after the initial hit, and there was no rush to unload more inventory before the holidays. Although the political battle is obviously causing some uncertainty, the market is continuing to act like it's confident the issue will be resolved before any major damage is done to the economy.
Although it's never pleasant to experience a gap-down open like that from Friday morning, if you're holding long positions I wouldn't be all that worried about it. The market needed a good shake to reset some charts. We've seen this slow upward drift for a while, and it has left a lot of stocks extended and lacking good foundations. This shake-out gives us a chance for some better entries....172 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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