I tweeted yesterday about my Twitter stream and how it seemed fairly split amongst professionals and traders as to which direction the market would move on a budget deal in Washington. Some people are looking for a market rally on a resolution deal and others are positioning portfolios to sell the news.
I like the 'sell the news' vs 'buy a compromise' split on my stream. I must be following the right group of traders.
— Paul Hassebroek (@PaulHassebroek) October 14, 2013
I, however, don’t have an opinion on which way the market will move and I’m definitely not making trades right now passed on a prediction.
I remain bullish for the intermediate term as long as the Fed is behind this market with the stimulus (or the threat of stimulus). I am willing to wager that Congress would do what it can to not default on the US debt and that some sort of resolution will be reached in the next couple weeks so investors can get back to worrying about other issues. All that said, I am not fully invested and would welcome a selloff as a buying opportunity.