Market Plummets Amid Fiscal Cliff Worries

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Daily Recap with Pete Renzulli: http://youtu.be/KQgTFoGP69U

The market had its worst day of 2012 the day after President Barack Obama was re-elected for a second term. Investors are concerned about the looming fiscal cliff, and how an essentially unchanged electorate will come to a compromise over the tax hikes and spending cuts that loom at year's end. All major indices fell between 2.3% and 2.5%.

Most analysts opined that a Romney victory would be better for the market, but not necessarily that an Obama win would trigger sharp selling. After all, Obama was the odds on favorite to win a second term, but it seems the market was at least pricing in the slim chance of Romney surprise. While the electoral college ended in a lopsided victory for the President, the popular vote shows that America is as politically divided as ever. Republicans maintained their control of the House while Democrats pulled out most of the hotly contested elections to maintain control of the Senate.

The market today showed its concerns that Democrats and Republicans will spend another four years squabbling. Failure to address the fiscal cliff could plunge the US economy back into recession, and

Not every sector tumbled amid today's sharp selling. Hospital stocks soared as Obamacare will move forward. Tenet Healthcare (THC) and HCA Holdings (HCA) led the charge, each gaining around 9.5%. Medicare and Medicaid providers are also big beneficiaries of Obamacare, with Centene Corp (CNC) surging 10% on the day.

Apple (AAPL) continues to sag, showing relative weakness again to the market with a 3.8% drop. The iPhone 5 launch has not been as blockbuster as expected, and investors seem to be unimpressed with the new iPad mini. AAPL has a broken chart after losing its 200-day moving average, and will need time to re-prove itself before traders are eager to put on swing long positions.

The action the rest of the week will be interesting to watch as the market will try to stop the bleeding. Expect President Obama to strike a conciliatory in the first few days of his second term as he looks to bring parties together for the good of the US economy. Politics are as contentious as they have ever been, and he faces an uphill battle, but compromise will be the key to progress over the next four years.

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*DISCLOSURES: Pete Renzulli has no positions

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