Market rise reassuring before Christmas

Yesterday and today saw nice gains in the U.S. equity market that partially offset the big drop on Friday.  The gains were not stunning in any sector or any name today, but energy and commodities did have somewhat of a dead cat bounce.  With two market days before Christmas it would be unusual to see any major market move, unless there is major market news or a global event that gains attention that is not directly related to stock valuation, but has an indirect impact nevertheless.

There remains a cautious approach here, as credit markets always get attention if anything is changing, and they seem to be.  The high yield market is a relatively small portion of the fixed income market, but that's what they said about sub-prime mortgages in 2008.  At some point, one gets too old to bite their nails.  Some tax related selling is going on here, but it is not widespread because losses are not widespread.  Then there is always that dilemma.  If a stock that was bought for a reason has losses, is it time to add rather than run?   Decisions are being made.

Estimated tax is being calculated now, and that always leads to a completely knee jerk thought, that thought being a wish that there was a viable Republican to vote for, or wish for.  That seems unlikely, especially with Congress now being in that party's control.  There is something to be said for a balance of power, especially if that is the best that can be accomplished.