The Stock Market Event You Need to Guard Against Right Now

We will soon be heading into the final month of 2012. Nothing really surprised me this year, as I thought trading might be up but also cautious. (Read “My Market View: A Risky Start to 2012.”) The S&P 500 is on a five-day winning streak. Is this the beginning of a sustainable rally? I say no, and I firmly believe stocks will find it difficult to advance higher. Don’t get too excited on the rally and let your guard down. The reality is that the current stock market is prone to downside selling. Sales on Black Friday by all accounts were fine, but not spectacular. I will provide a complete analysis once the numbers are in for Cyber Monday. There is also the uncertainty of the pending fiscal cliff. We will see tax increases and budgetary cuts to areas such as government spending that will impact the middle class and, ultimately, its ability and desire to spend. Then there’s the ...