Friday, December 19, 2008

State of the Market - 12/19/08

It's Friday and since we had another day of movement that takes us nowhere as I mentioned last night, I am cutting the typical state of the market short for today. Today was a boring day and nothing of significance happened from what I could see. I had my quote screen off for most of the day. I will be back this weekend with a detailed video and a look at both sides of this market, hoping to gain a clue as to where we head from here.

I was stopped out of my NTES short early around $21.35 for a 2.5% loss. I was away from my computer this morning and just set my stop, figuring it would get hit anyway. That puts me back to 100% cash for the weekend as my account continues to grind nowhere but sideways in this chop. Being away early cost me a breakout in one of the only two stocks I was watching on the long side - CSKI. There is no guarantee I would have taken it, but it looks good now - I just can't chase it. Kind of sucks but so does this market.

Until the bottom trendlines are broken, there is no reason to short this market from my perspective. Until the 920 and 1600 levels on the S&P and Nasdaq are broken to the upside on heavier volume, there is no reason to get long any stocks in my opinion. Hopefully one of those two things happen soon so we can get some trades on that will move, but with Christmas coming up and the lower volume that is certain to accompany it, it is not like it has to happen. We could just continue to chop sideways into the year end. I hope that doesn't happen, but it could.

Enjoy the weekend and I'll be back tomorrow. Take care.


Anonymous said...

Hi Mac: will there be any year end window dressing this year? Will it take the markets up or down, if any? Thanks! Good luck with your baby boy! -Elena

Mac said...

It's possible we get some window dressing to end the year. I would play it above 920 but we would have to get some volume at the same time in order for me to get excited. Thanks for the well-wishes.