U.S. Day Ahead: Buy, sell, hold or panic! No deal in sight!
Friday, December 28, 2012 - 02:14
Dec 27 - Expect more volatility in the markets as traders tweak portfolios and positions with no solution to the fiscal cliff and only two more trading days left in 2012.
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I sell whole panic there are two -- -- -- that in 2012. And with the fiscal clean solution looking slimmer by the minute. All that her -- Investors have been voting with their feet sending markets down a fourth day in a row and on Capitol Hill it's getting ugly. Set and leader Harry Reid calling house leader they are a dictator. For not allowing the majority of the house to get what it wants. So much for bipartisanship. Bottom line expect more wild swings in the markets come Friday. We're coming up on the end of the year and my sources are saying if we do was hit you on the fiscal -- it won't come until January at the earliest -- told then. You can expect further rises and the volatility index. More volatility in markets and light trading volume which could amplify various moves. In addition to look for some more window dressing in the final trading days at 2012. Which could. Act to the Al performance we've seen -- names like Bank of America and Expedia. And -- the chaos there are two economics that's to keep an eye on first up to Chicago PMI. That would tell us how manufacturing is performing I have ours is the index is set to rise to 51 point one in December. Although that will be its best reading in three months is still looks pretty weak. 51 point one actually means heavy industry is barely growing. And a cup isn't expected to the middle of next year. I have ours says that the index comes in under sixty that would sound alarm bells. You're other piece of data is pending home sales I have ours says sales to rise by 1% after last month's surprise 5% surge. The market is still being boosted by record low mortgage rates. And some growth looks strong enough to work down the two million or so existing homes on the market. I have arts says at this rate it could take only three months. To get rid of the overhang. Eastern follow us on Twitter writers insider and our interviews that market movers on Reuters TV. Friday find out why one top economist says there's an 85% chance of the US volley off the fiscal plan. I'm Rhonda schaffler this is writers.
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