News dominates

Pricing in a resolution

The market looks to be pricing in a resolution to the fiscal cliff.  Despite what I considered to be negative commentary from the news outlets, traders seem to just be happy that negotiations are underway.  Time will tell whether or not the result of a resolution will be good enough to keep the market satisfied.

My bearish option play is down a lot.  But, risk is risky and I'm only playing with an amount I'm willing to lose.  I plan to keep holding it.  I may not get it all back, but I think there will be a better opportunity to get it back.  Even if I don't, I entered the trade knowing I was willing to let it go to zero.  Just the way I'm playing the game, for this relatively small position.

Today's scores:

Scores pushed higher today.  I don't see any strong signs on the charts of the market reversing course tomorrow, but we'll see.  News is the driver of this market.