Now that it is an irrefutable fact, our leaders do not have the country’s best interest at heart. What do we do?

What we should do is impeach all members of Congress and start over. Surely there are 500 or so people in this country who actually care enough about this country and not some partisan ideological BS.

Ok, the rant is over. Now comes the hard part. How do we deal with no resolution to the Fiscal Cliff? Since the weekend was a waste we still feel that no deal will be done on Monday and we will go into the New Year falling off this cliff. The powers that be will probably extend the negotiating period to the 15th of January and hopefully by then, clear heads and clarity will prevail.

We look for the investing public to overreact to this news and sell off early on Monday and smart money will step in and buy on the dip. This smart money has been waiting for the opportunity to get involved and this may be it. What’s tricky is the fact that its New Years Eve and that could mute both sides to the trading equation.

The data this week is mixed. The ISM Mfg Index is out Wednesday and hopefully it will show a small rise. A reading over 50 would be fine with us and indicate a small but important strength in manufacturing. Jobless claims and the Employment Situation are the two biggies at the end of the week. We do feel that we will start seeing a flattening out of the Claims. Hopefully, below the consensus which is 363,000. A reading below 358,000 would be a nice start for the New Year.

Stayed tuned for some insigits on New Years Day!