Friday, December 4, 2009

State of the Market - 12/4/09

Today's post will be short because it's Friday and because nothing really changed today in the market. For the fourth straight day, stocks took a shot at establishing new highs for 2009 and for the fourth straight day they reversed and closed off their highs for the day, failing to close at new highs. A good jobs number boosted pre-market futures, and stocks gapped up and rose for the first half hour or so of trading. From there, however, it was bad news, as stocks reversed hard and gave up all of their gains by lunchtime. They bounced from there, fell back to retest those lows around 2:00, and then bounced a bit into the close. But overall, another disappointing day for the bulls in that they just can't seem to get a breakout going that sticks.

I thought long and hard about buying this morning but I really couldn't find anything interesting and therefore I just passed. Perhaps that was a sign (not finding anything) that I should have paid more attention to as it was telling me the market wasn't going to work today either. I am still in cash and as long as this market remains range-bound, that probably is the best play out there. I will be back this weekend to look at things more in-depth, but seriously, until this range is broken, trading will be quite difficult. Take care and enjoy the weekend.

No comments: