Financial Market Commentary

I continue following my folly of trying to divine the outcome of the fiscal cliff “talks” by observing the price action of certain stocks and sectors. Today we’ll examine the price action of two large commercial banks (Wells Fargo and US Bancorp) and two large investment banks (Goldman Sachs and Morgan Stanley). The first chart below shows the cumulative returns to WFC and USB since September:

WFC’s price action is encouraging, but USB’s is less so. Checking in with GS and MS below . . .

. . . provides more encouraging results. Over the weekend someone allegedly “in the know” mentioned that Goldman Sachs contributed more to the Obama campaign than to Romney’s — interesting. Wonder if this entitles the Giant Squid to a “sneak peak” at the fiscal cliff “negotiations?”

Draw your own conclusions from the above. I’m sticking with my call that we’re all given a long, hard look at the view from the precipice of the cliff for maximum theatrical effect. Then we’ll be dramatically snatched from the fictitious brink, so that our political leaders (?) can lay claim to actually accomplishing something.

Wouldn’t it be nice to get back to fundamental analysis and chart-reading in 2013? Does anyone else miss having real markets to play and trade? I know I do. Happy New Year, everyone.