Monday, February 22, 2010

State of the Market - 2/22/10

Sorry for the late post - had some family commitments to take care of this afternoon. Not that it really matters - we saw a very boring day today on Wall Street as stocks traded in tight intraday ranges and went basically nowhere overall. Volume was lower and really the technical picture hasn't changed much at all from what I have wrote the past two posts. We are overbought and grinding higher on low volume, all the while hanging out right above or right below key resistance at the 50 day moving average. Logic says we pull back here, but logic doesn't work so well in this market, so who knows? I am still in cash so I guess it doesn't matter too much to me.

The only interesting development today was the outperformance of the financials, which made a solid move above their 50 day moving average, albeit on pathetic volume. Perhaps this is a clue that the market wants to go higher. Ideally, we would see another few days like today which would let the market work off the overbought condition and let some charts setup. However, when I see charts like CAGC and TSTC continue to extend their recent gains with very little rest, maybe rest doesn't matter either. We are in a stock picker's market - you have your CAGC and TSTC, but other China stocks like CSIQ and VISN that look like death now, so who really knows?

To be honest, I am kind of uninterested in the market right now and don't plan on doing much until my scans start showing me more possible plays. I haven't had many for about a week now - nothing is showing up - and when that happens, the worst thing to do is try and force things. Hopefully soon we'll get some nice setups - again, a rest here would be perfect - and if that happens, I'll do my best to be ready. Until then, however, I sit and wait, boring as that is. Take care and good luck Tuesday.

1 comment:

Doctor Stock said...

After doing my own review this afternoon/evening, I'm also "bored" with the lack of interesting possibilities. Cheers!