Seeking Alpha

Remark your calendars as budget/debt deal set

  • Cue the "can-kicking" meme. The deal to reopen the government funds federal operations until January 15 and lifts the debt ceiling through February 7, with a committee to be formed to work on broader budget issues, according to a Senate Democratic aide. The agreement calls for a progress report by December 13. Both houses of Congress must vote on the plan, but this appears to be a formality.
Comments (7)
  • Is it mostly retail that's doing the knee jerk buying on the news. Based on the last couple weeks, the market never expected this deal not to go through. I believe that consumer weakness will be on view come holiday sales reporting time and this insentience bull market will take a well deserved rest.
    16 Oct 2013, 12:57 PM Reply Like
  • Can someone give me a clue. Why with this news, is the market climbing steadily downward? (From time of announcement for 15 mins now).
    16 Oct 2013, 12:57 PM Reply Like
  • I believe it's due to the fact that no one all Wall Street truly thought that the US was going to default. Bad news was never baked in and so there's no real reason for a jump. Retail is a different story.
    16 Oct 2013, 12:59 PM Reply Like
  • too little too late
    16 Oct 2013, 12:58 PM Reply Like
  • Chance of default remains at 0%. But the media needs drama in its endless attempt for ratings which is why we hear of such nonsense
    16 Oct 2013, 01:38 PM Reply Like
  • Sidelined money, program money, momentum money.....some sell on the news money....lots of program money and money that had been stopped out and needs to get back in.
    16 Oct 2013, 02:24 PM Reply Like
  • Thanks for all the ideas from other posters! That helps sort it out for sure.

     

    @ IPOChaser
    - that looks quite accurate. Wall St didn't expect default so a decline wasn't baked in, to then make a pop. Since then likely retail's gotten on board. (There's been a lot more ads & articles lately, trying to get retail into the market.)

     

    Really like you're idea of what will happen later in the year. I hadn't thought of it that way (consumer confidence weakness showing, & the bull reacting). But with the drama temporarily on hold. Plus stocks having gone up rapidly lately BUT more on news that we didn't shoot ourselves than on some specially good fundamentals... that adjustment has to come. Sales weakness, would make a good trigger.

     

    ...there's always an "on the other hand" - if retail sees the bull has gone up over the prior tops from 13 years ago, and is still holding... they'll finally have more confidence to get it. It may just keep the bull going until the next political/budget/fedta... set of "crisis". And at this point, no one believes the US will default even if they go to the brink in Jan. No one believes the Fed will taper till the numbers support it. (That one I wouldn't bet on personally myself.) So this could keep going... Any thoughts on that?
    18 Oct 2013, 08:45 AM Reply Like
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