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Saturday, December 29, 2012
My "crystal ball" for the last day of 2012
Well, it has been a very volatile week before the final year end. Overall the market has been under quite some pressure due to no action from Washington for the fiscal cliff. While I don't have a crystal ball for what may happen on Monday, I do have some gut feelings about what could happen. It again all depends on how the saga in Washington will play out. If a deal is announced before the end of the trading in the last day of the year, then the market will likely shot up dramatically, a kind of relief rally. But more likely I think there is no deal announced when the market is closed, and we could see some significant plunge of stocks. This will serve as a warning sign for the politicians, who will then reach a deal before the mid night of Dec 31, 2012. If this is the scenario, then Jan 2, 2013 will meet you with a huge rally. Anyway, no one can tell you for sure what will happen. It is anyone's guess at the moment. Personally I hope some sort of market crash will come, which will give me a better chance to buy what I like.
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