Monday, November 17, 2008

State of the Market - 11/17/08

More of the same today on Wall Street - choppy, listless trading with a downward bias along with a sharp move lower in the last fifteen minutes or so of the trading session. Stocks started lower, moved sideways for about half an hour, and then broke to new lows for the session. The market quickly bounced, however, moved sideways for a bit, and then put in a decent rally into the lunch hour that took the indices right back up to some overhead resistance near Friday's intraday lows and closing lows. They really could never get past that level, moving sideways for most of the afternoon until they broke down again in the last half hour, closing pretty much at their lows for the day. The only bright spot is that volume appears to be lower once again.

Technically, the rally attempt via IBD is still intact and tomorrow is the first day we can look for a follow-through day. Anything is possible in this market, but I am not holding my breath that we will get one. I wanted to see the bulls make a stand today after Friday's close and they really didn't do that today, although the selling wasn't crazy or severe. There just don't seem to be any buyers right now and until there are, there is little chance of a nice rally starting anytime soon. I will say that my long watchlist didn't have any stocks that look like they were hurt today and some were actually higher today. Perhaps that is one bright spot in an otherwise terribly boring and uninspiring market.

I don't have a lot to say today because I don't think there is much worth saying. At least it feels good I guess to know selling my ETFs on Friday after the close was the right decision. I continue to have no good feel as to what happens tomorrow or the rest of this week, and am keeping my mind open to pretty much any possibility. I am totally in cash and will keep an eye on things in case I need to act, but I don't get the sense I will be acting on anything in the near future. Good luck if you are trading right now. It's certainly remains tough out there.

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