Thursday, February 18, 2010

State of the Market - 2/18/10

I have to leave soon so this will be quick, but we saw no rest today on Wall Street, as stocks moved sideways for much of the session but climbed a good deal higher around 2:00 and ended another session with impressive gains. The Nasdaq looks like it will close several points above its 50 day moving average while the S&P will likely close right (and I mean right) at it. Same deal with most sectors - financials and semiconductors are right at their 50 days, while a few others (IYR, RTH) are slightly above theirs.

I did nothing once again today as I don't see many attractive setups on the long side. In addition, volume was once again very low today and that has me hesitating here. I am having a really hard time putting the rational part of my brain aside and just buying whatever - this was the problem in 2009 as well. For some reason, I just can't do it. We are now also quite overbought on the metrics I use and so I have to just wait patiently for the market to rest a bit and for some setups to form. I am completely aware that this probably won't happen and we'll continue to grind higher on very light volume much like we did in 2009. For some reason, however, I just can't chase here.

Good luck tomorrow - maybe I'll find some long setups in my scans tonight. I am not bearish here and am not shorting, but I can't get overly bullish here for the reasons stated above. Maybe someone can convince me differently and "straighten" me out. Take care.

2 comments:

bmbull said...

This market is nuts.

John said...

It pains be to say it but get used to Dow 10,000 for a long time.