Another short post today because there really isn't much to say after today's lackluster action - I still think we are basically in no man's land. The market did bounce a bit today off of the heavy selling seen last week, but it certainly was not a strong bounce, with the markets finishing in the middle of their intraday ranges and with only modest gains. Volume also appears to be lower - actually much lower than last week.
We could certainly bounce further from here but in order for me to get bullish this week, I needed to see a very strong bounceback today and we didn't get that. My guess is that we have further downside to go and that is how I plan on playing things this week. I really have no interest in dip-buying right now, and if we get a few more days like today (weak bounces on lower volume), there should be some nice bear flags to play breakdowns from. I am hopeful that's how things will play out, but if we fall fast again without a bounce, I will miss it and am OK with that. We're still oversold enough that shorting right here does not look appetizing to me.
In the meantime, I wait patiently and sit on my hands. I still think that's the best play for the next few days. We have a deluge of earnings reports this week and who knows how they will turn out or how the market will react to them, so cash looks even better considering the uncertainty out there. I am guessing there will be more opportunities later in the week and that's what I am looking toward. Take care and good luck Tuesday if you're trading.