Sabrient's Baker's Dozen 2013 is up 37.24% since January 11, 2013.  The top 5 performers are EPL +80.10%, GNW +71.27%,  JAZZ +53.61%, STX +50.32%, and OCN +47.91%.  All 13 stocks are positive; 12 have double-digit gains, and the only single-digit performer, ASH, is doing fine at +8.09%.Baker's Dozen 2013 up 37.24% YTD.

You can track the Baker's Dozen performance here

The Sabrient Earnings Busters Q4 is up 4.05% since October 1.  Its top five include SAVE +25.40%, WOR +16.46%, EPL +13.78%, BC +12.06%, and CTRX +9.52%.  Seventy-five percent of the 20 stocks are in positive territory.

As most everyone expected, Congressional brinksmanship gave way to an eleventh hour agreement that will put the government back in business and raise the debt ceiling. However, it’s only a temporary measure that merely defers another knock-down/drag-out for a few months. The question is, how will investors react after an initial bullish burst of relief?

Gridlock is still in place.  Markets are very wary (and weary) today.  You would think that last Thursday and Friday would have demonstrated to Congress that even a hint of settlement is very welcome news.  But now it is the Democrats turn to flex their muscles and demonstrate their power.  Obviously, that is not what we elected them to do.

The intransigence continues in Washington, and it has kept stock market buyers at bay until they get the go signal from Congress. This has left the sellers in control as investor sentiment has temporarily shifted from a buy-the-dip mentality to protect-your-gains and preservation-of-capital.

The market had a very rough opening this morning with the Dow down over 100 points and the S&P and Nasdaq looking weak.  Yet, the market rebounded a little, cutting some of the losses. Did you hear or read anything over the weekend that made you feel good about anybody solving the budget and debt issues soon?  We have 10 days! 

Stock market bulls have been reluctant to let the market fall very far. Support seems to arrive whenever the bears get too bold. It seems the bulls are bound and determined to have their Q4 rally, especially with the Fed continuing to blow wind in their sails. They just need Congress to wave the green flag.

The Senate has rejected the House bill, and the government will shut down at midnight if the House doesn’t submit a “clean” bill with ObamaCare issues removed.  The current thinking is that is unlikely.  What is more likely is a day or week extension to allow time for more negotiating (as if any has really taken place).  How will the market react?

You know by now that the Fed last week opted not to begin tapering its quantitative easing (i.e., buying of Treasuries and mortgage-backed securities), primarily for two reasons, I believe. First, rapidly rising long-term interest rates were already starting to hurt the recovering housing market (and the resulting wealth effect).

Today, with no new economic data, the market struggled through its third consecutively negative day of trading after a six-day winning streak.  What’s the difference?  We have traded a dubious, yet serious, problem in Syria for a much more tangible, and perhaps less solvable battle, among Congress.