Tuesday, November 24, 2009

State of the Market - 11/24/09

We had a pretty "blah" day today on Wall Street, with stocks selling off very slightly but in this very low volume holiday environment, nothing can be taken too seriously in terms of the action. Volume looks to be even lower than yesterday's putrid totals and it looks like this entire week will be quite slow, although the price action may actually fluctuate more due to the low totals.

Technically, we may be forming little flags here on the indices and financials - rest would be good to continue these formations. Of course, if we would break above them, I would want to some decent volume accompany the move and until it does, I still have doubts in the back of mind.

I am still in cash and will be the rest of this week. Someone commented yesterday to remind me that cash is a position, and that is true. In my opinion, it is the best position right now because we are just in a chopfest. There are very few individual setups that look good at all, and while you may be able to catch a CGA or SEED for an intraday move if you day-trade, holding them more than a day or so is very tricky in this environment, as you can see with SEED today. So as a swing trader, cash remains my play.

That's all I have for today - good luck if you are trading heavily right now. It is just too slow and choppy for me to do that. Take care.

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