I am watching how the fiscal cliff unfold itself going into last day of the year. But as a trader, I also have a plan in mind going into next week.
There will be 2 scenarios now.
1) The stock market might tumble if there is no fiscal cliff policy, whether partial or full policy. If the stock market falls, I would take any downturn as my chance to buy stocks that are cheap, but are good fundamentally, and that shows resilience amid the drop. As long as I go in before next Friday evening's US jobs reports is fine, as I anticipate Jobs Reports next week to be better than expectations based on our research. Friday's Non farm payroll and Wednesday ADP employment report should show a better than expectations report.
2) If stock does not fall down the cliff on Tuesday, but rises in the event of any surge in confidence over the fiscal cliff policy, I would take the opportunity to go in on Wed American market or Singapore market.
Even if stock market tumbles big over the fiscal cliff incident, this is just one chance for me too good to be missed. The more the market falls over the cliff, the better it is as I anticipate economical reports to be good and stocks' earnings reports to be excellent in january! I am aiming for a big HONGBAO from the stock market in february!
Gong Xi Fa Cai!