Friday, July 17, 2009

State of the Market - 7/17/09

Another options expiration dud today on Wall Street, as stocks traded listlessly throughout the day in one of the most boring days I can remember in a while. I have to be honest and I say I wasn't following things very closely, but it sure seemed boring. Stocks finished slightly lower but basically nothing meaningful happened today.

Technically, four or five days like this would be very good for the bulls as it would allow the overbought conditions to be worked off next week and set the market up for another leg higher, but who knows if we'll get that. As I've said all week, it will really all depend on earnings and how the market reacts to them. If you know both of those answers, then you will be in good shape. If you're like most of the traders out there and are just guessing what earnings will be and what the reaction will be, then you may want to watch out - you could get yourself in trouble. I remain in cash and will continue to look only for stocks with catalysts (earnings) that make their moves more predictable in this very unpredictable environment.

I'll be back this weekend with one or two videos, but that's about it for now. Enjoy the weekend.

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