Sunday, September 29, 2013

Impending Government Shutdown?

The wisdom of Ecclesiastes reminds us:

 What has been will be again,
 what has been done will be done again;
 there is nothing new under the sun.

In reality it’s impossible to predict short term what will happen in terms of a government shutdown. The current standoff makes shutdown seem inevitable however, we have sure seen this before, it’s nothing new. There is no compromise in sight and yet compromise always occurs and always has…all the way back to the formation of the country.

If a shutdown does occur it will end with some currently unacceptable compromise being readily accepted.

I have seen predictions that this week will bring chaos to the markets…but it’s “unknowns” that trouble the market and in this case a compromise seems likely to occur just as it always does, even if a shutdown does have to be endured.

Perhaps it would be helpful if Congressional members also felt some financial pain. No doubt  resolution and compromise would speedier if this were the case, however their pay in unaffected by government shutdown.

What did I see in my weekend review?

The 10-yr Treasury yield continues a little slide now to 2.62 %
IBD (Investor Business Daily) continues: Confirmed Up Trend
Copernicus Systems: Long, but mixed

Moneys Flows:  still positive with 1/3 trending higher and portfolio price all pointing higher

Currently my "Stocks for a Trade" now consists of:

ABX -3.36%

ETF’s for a trade are:

QQQ +6.99% 

IWM +7.52%

IBB +4.25%

What will I do?

I did not add to positions in IBB, QQQ and IWM this week. If volatility does occur this week, these are the places I will consider adding.

I hope you have a great week.

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