Market Participants Begin Move to Sidelines

Next week, with the fiscal cliff approaching, many market players will  begin to reduce daily exposure to trading in futures and equities leaving  the bulk of price action to professional traders to play thinning volume and the resulting increased volatility.  Decision strategies for Democrats and Republicans have begun to emerge with  both sides claiming they are restricted to an all or nothing outcome and unable to compromise.  Of course, the rule here is to never press the other side with what you think is a dominant strategy unless you absolutely know your own worse case outcome.   Many fools over the years have increased their own exposure by pressing a strategy they believe will absolutely motivate the other side.   More to come.....