Monday, June 28, 2010

State of the Stock Market - 6/28/10

What a boring day today on Wall Street.   Stocks fell early on, but bounced nicely before lunch.  At that point, it looked like the bulls might be able to get something going.   That didn't happen however - stocks drifted to the flatline after lunch and just chopped sideways throughout the afternoon, finishing almost exactly where they started.  

The technical picture obviously didn't change much today - check out the video from last night for a more detailed description of what's going on right now.   It is pretty sad that after being beaten down four straight days last week, the bulls have yet to be able to produce any sort of meaningful bounce the past two days.   Intraday, both attempts that they made were quickly beaten down both Friday and today.   It looks like the indices could be forming little bearish consolidations here so I think it is possible 1040 and 2140 is tested sometime this week on the S&P and the Nasdaq.   Another day or two like today and we won't be oversold anymore either.

I made no moves today but have to admit that I came close to getting into YGE and BEE mid-morning - I was watching both closely.   Over the last week, anytime I have had the urge to get long, I have just walked away from the computer for 10-20 minutes and then came back to see if the stocks I was watching were still looking good.   Without question, when I have come back, they don't look worth it anymore.  Doing that has saved me some heartache this week in terms of the small losses I would have taken had I not shown some discipline in staying out of this horrible market.   Really, right now, I can't see how anyone is making any money - it is very tough out there and volume remains very light.   The mantra "less is more" remains a great one to follow, as boring as it is.   Take care and remain careful and disciplined, because if you don't, this market will chop you to bits.  

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