Friday is the unofficial deadline to get a deal done on the U.S. debt ceiling issue. President Obama would like a deal by tomorrow (July 22nd) giving lawmakers time to pass legislation before the official default deadline on Aug. 2nd. Granted, I don't actually expect the U.S. to not pay bond holders should the Aug. 2nd date roll by without a debt ceiling extension but that's a technicality.
Much of this week's gains have been fueled by expectations that the White House, Senate and Congress would get a deal done. What happens if lawmakers disappoint and don't come to an agreement? Odds if we don't see a deal then stocks will retreat lower. Do you remember the first time they tried to get the TARP deal passed? They failed and stocks sank sharply.
I discussed it with Jim about adding new candidates tonight. We both think it's best to wait and see what happens on Friday, especially with the major averages nearing their highs, which could prove to be overhead resistance.