Wednesday, December 24, 2008

State of the Market - 12/24/08

As expected, we had another low-volume, boring session today with the market up a small amount on very thin trade. Friday will likely be another slow session given tomorrow the market is off for Christmas.

Technically, the numbers to watch are still 850 to the downside and 920 to the upside on the S&P. A break of either of those levels on heavier volume could be the sign we need to know what the next play should be.

I covered my two shorts this morning - NDAQ at $22.57 for a 6% gain and CCI at $16.39 for a 2.7% gain. Both were near what will likely be short-term support and I really didn't want to be bothered with any positions going into Friday.

I guess it is better we have fallen this week on lower volume than rallied on lower volume like we did during Thanksgiving. We'll have to see if anything happens next week - I hope we just continue to move sideways. Perhaps when the new year starts we can get a move for real. Based on my individual charts, I am still expecting a move lower rather than a rally - I just don't have many nice charts except for some precious metal stocks.

That's it for today. I want to wish everyone of my readers a very merry Christmas and I hope the holidays treat you all very well. God bless and I'll see you probably sometime this weekend.

3 comments:

szaman said...

Mac- Mary Christmas to you and your family!

SRSFinance said...

You make a good point about not rallying higher on low volume. It would seem that the trading range continues to persist leaving trades vulnerable to purely random moves.

It frustrates trend traders to be sure.

zstock7.com said...

I was looking at SMN too!! down 26% that day--and now I'm looking at the chart and I can't remember what happened. Did SMN stay down the 26% or did the chart correct itself, after the capital gains payout?
zee