Tuesday, August 26, 2008

State of the Market - 8/26/08

Another very boring day today for the stock market. I really don't even know what to say anymore about the action that I haven't already said. Today was choppy and although I considered a few short positions early on, I once again did nothing. My only position is short MON.

Technically, the S&P and Nasdaq both closed above the important levels I mentioned last night, so I am somewhat expecting a few up days now. Volume was very low again today, and even though it was higher than yesterday, it still doesn't mean much when it is so low.

My game plan remains the same - I am looking to get heavily short at the right moment, but I have to have the patience to wait for that right moment. Maybe we have already had it, but my guess is we continue to chop around for a while until trading volume moves higher. The 1260 level on the S&P 500 and the $19.75 area on the XLF are the two levels I am watching the most. If we get below these, particularly on heavier volume, then I think it will be time to get heavily short.

There really isn't much to do right now. I will keep doing my scans and stay alert for possibilities, and if I find any charts to watch, I will post them tonight. But overall, it is still a very boring market that doesn't deserve to be played in a heavy manner. Someday, hopefully soon, this market will get more interesting. We just have to wait until it happens. Mr. Market always has his own time frame, and none of our thoughts or feelings will affect it. That's about all I can say right now. Hopefully, you are not trading too much right now so you will be ready for the next big move. Good luck.

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