Stocks Weekly Forecast

          This is more of a week in Washington then it is for the markets. Congress needs to act as soon as possible to hammer out some sort of a deal in order for the economy to keep growing, keep taxes at a lower rate, and keep the market afloat. If no deal gets in place, the market will tank, taxes will be hiked and the economy will stall. This is what we have on tab for this week in the market.

Your stocks weekly forecast

- The market last year took a big hit, especially Friday, as we came to no new news in Washington over concerns of the fiscal cliff. Republicans and Democrats have been in a grid lock for weeks, and it seems that the market has been teeter tottering back and forth in the last couple of weeks. The closer we get to a deadline without a deal, the further the market goes down. Last week the markets fell. The Dow lost 1.5% and got hit the hardest out of the S&P and the NASDAQ. 

- Since the markets got hit last week expect it to be even worse if Washington does not get a deal done. Have no fear, Alleyway Investing is doing a quick research into fiscal cliff proof stocks for 2013, and we will be listing our watch list for 2013 very soon.

- With New Years coming up, the week will be thankfully shortened for the markets, Tuesday the markets will be closed for New Years. 

- Many economic data comes out this week, including jobless claims, factory orders, construction spending, and more. This data which would have jumped the markets if a deal was in place, will do little change to the markets as the fiscal cliff seems to be the main target.

- With Finish Line and Family Dollar Stores's earnings coming out this week, there really isn't to much to be said about the earnings this week. It will have little effect with the ginormous fiscal cliff cloud over the market. 

       So what should you do? With this fiscal cliff talk that has been going on for months coming to a dramatic climax, how does this hurt your investments? And with more budget issues ahead what should we expect with the markets in 2013? These are all questions to take into consideration when investing in the new year. The market could teeter totter and probably get some of its gains chipped way in the beginning months of the year. We suggest to start selling your gains of the year this week with the markets getting drilled on the fiscal cliff crisis. Tomorrow being the last trading day of the year, seems to be a good idea to sell them then, of course it depends on the stocks that you own since they may still be worth owning. But, this week seems to be in a dark shadow even with economic reports coming out. So if no deal gets done, the markets will get drilled, if a miracle does happen then maybe 2013 will be filled with wonders and joy ... and gains! Keep your eyes peeled and invest at you own risk.