Ilczyszyn: Why I'm Buying into the Market Right Now
iiTrader Founder & Chief Market Strategist
A sharp sell-off on Friday's close may have caught the attention of many politicians. The S&P dropped almost 0.2 percent on negative news that no "fiscal cliff" deal was struck to avoid automatic spending cuts and tax increases.
So maybe we should give Congress a raise? In fact, that's exactly what President Barack Obama has done. The president ended the federal employee pay freeze, giving incumbent congressional leaders and Vice President Joe Biden a bump up in salary. Meanwhile, investors and business owners are left scratching their heads.
The bigger issue for traders and investors in 2013 will be the debt ceiling, and our weak and slow-growing economy. I expect a "just enough" resolution to the fiscal cliff on Monday that will push our problems forward. (Read More: Senate Convenes Amid Optimism as 'Cliff' Deadline Nears.)
Even with all the headwinds, the stock-market is resilient—just Monday morning, we've recovered all of Fridays loses. So what's the take away? Buy the dips! This is the new normal.
I think the market would love to close positive on Monday to prove a point going into the new year.
So here's my New Year's Eve trade: Buy the March E-Mini S&P at 1393.00, place a stop at 1383.00, and sell for a profit at 1423.00. This trade risks $500 to make a potential $1,500.
Good luck, good trading, and see you in 2013!
Read on for 10 Things You Need to Know to Trade Futures
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