The Cliff

I suppose I am pundit-y enough to have a blog post on the fiscal cliff. You will have to forgive me for not having any posts at all for a while but this country (and world) are messed up right now. The ink was barely dry on news of a mall shooting then we get a school shooting. I am still donating to the Hurricane Sandy relief fund so evil/devil/Satan, can we get a moment to breathe, please?

And in the background, the fiscal cliff. I say background because it's only money. Keep that in perspective.

Fitch has now threatened to downgrade US debt if we go over the cliff.  Despite the pain that will cause, not to mention the pain of cuts and taxes and the recession that will surely follow if they do nothing, I say we should go over the cliff. No, we must go over the cliff or we will never fix this mess.

Politicians are ill-equipped to really fix things because in the short-term they will not get re-elected and their donations will dry up. We need the free market to fix this and that means letting it flush this mess down the pipe once and for all.

Will it hurt real people? You bet it will. But they are being killed by a thousand cuts already from zero return on savings to getting taxed on taking a #@$% to being regulated to death.

Do this, don't do that, can't you read the sign?
- Sign, Five Man Electrical Band (1970)...covered by Tesla in 1990

What do they have on the table? Slowing down the growth of government, not shrinking it. This will not fix things so please bring on the invisible hand. No, not of god but of the free market. Not familiar with that term?

Here's your definition: A metaphor conceived by Adam Smith to describe the self-regulating behavior of the marketplace.

The economy right now is like a stuffed up colon. Clogged and in need of a good financial enema. Please politicians, stop trying to treat it with aspirin to block out the pain. Pain is there for a reason.

Yahooooo!

The working title for today's Barron's Online column was "Reanimated Tech Stocks for Christmas." It was about how several tech stock that were left for dead have been resurrected and may be good opportunities. You'll have to read the column to see what they were. Can't give away the store otherwise Rupert would have no need to pay me.

There is one stock I did not include in the list, mostly because we have editor-imposed space limits.Yes, theoretically the online limit is whatever I can write but realistically nobody is going to wade through a 3000 word piece.

What stock? Well, if you read the title of this post you know. The betamax of search engines, Yahoo, is on the mend. Remember those campy commercials with the eskimo family ordering a hot tub? or the Eastern European dating service with the monkey and the toucan? Yahoooooo-oooo! Yes, fun but we all now google and bing stuff, don't we.

Anyway, check out this weekly chart.

Yahoo is now at the top of a long base, if not slightly through it. I think that it needs a little rest here as momentum driven rallies do tend to fail. Just look at the last two tries above. But overall not too shabby.

And now look at weekly RSI. A quote:

"The most bullish thing a stock can do is get overbought and stay that way."
- Alan Shaw, CMT (former TA boss at Smith Barney)

Disclosure - I own some.