Well pace you bets guys; it's that time. The meeting is Sunday night guys with the house and that is basically the last time they have a chance to make a deal. We should not have expected anything more of this, the politicians ALWAYS wait till the last minute - always. In my personal opinion I would feel most comfortable being cash weekend, followed by being long, and then I would feel least comfortable being short. Let me tell you why.

1. Being flat, or cash over the weekend is obviously the smartest choice. This is because NO ONE actually knows how this fiscal cliff deal with resolve, probably not even the fools up in Washington. If you can not control the news, and it is a news driven market -- Do not position. 

2. Being long into the fiscal cliff I would feel second most comfortable with, and this is why - We have seen 5 DOWN days now and ANY agreement in Washington will likely send the market higher, quick. Therefore, do not chase the shorts after five down days and probability tells you an up day is coming soon.

3. Being short I would be least comfortable with because of the same reasons I would want to be long, do not chase the shorts -- five down days is not the time to initiate new shorts.

Gun to head; I think shorts are squeezed Monday, but that does not mean a thing; it is just a hunch.

Have a nice weekend, follow me on Twitter if you have not and if you have any questions or comments please visit the contact page.

12/28/2012 18:20:23

I agree 100% with your analysis... I'm almost 100% $ over the week-end minus a small stake in $AAPL @ 527 so I don't really worry and will sleep well. Fun to see a young man like you following the stock market.

Have a good Week-End !

mikhoul (StockTwits)


Ben, I love your thought process and positions. But when I watched the Presidents address this evening and watched his body language more than listened to his words, and telling the two idiots to be quiet kind of professionally, I mean, how else would you say it to a couple of people talking and not listening, that was rude of them to interrupt the President, but back to his body language, his firmness in his arm and lack of hand gestures along with sorrow on his face, and the way he walked away like he's been wiped in a fight suggests there will be no real improvement, but an agreement will happen, but it won't help much. There will be no full agreement to solve all the fiscal problems. My charts are telling me of down days to come through out January. I would love to be a bull and say the markets will go up but I just can't at this time according to my charts, but I have been wrong in the past. Have a Great weekend and don't spend all your money at one place. I am a poor old man. Hint Hint. Happy New Year.

PS, remember I said Apple was very short term up?

Ben C Banks
12/29/2012 07:52:13

We shall see, there is a ton of headline risk that we cannot control and I said that stuff based off the probabilities. It will be interesting.

12/30/2012 08:43:42

Nice article about this weekend. Kind of like the line from Clint Eastwoods Movie (Dirty Harry). Do you feel lucky Punk. I for one am setting it out for now. To much risk.


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