Wednesday, March 9, 2011

State of the Stock Market - 3/9/11 - "Broken Record"

Absolutely nothing changed today on Wall Street - stocks jostled around in very choppy fashion but went absolutely nowhere overall.  We remain in a range and swing trading is difficult if not impossible in this environment.   I remain in cash and am perfectly content waiting for this market to decide what it wants to do next.

I have no idea what that "decision" from the market will be or when it will come, but the range today was a little tighter than it has been recently so perhaps a conclusion to this awful choppiness will be upon us sooner rather than later.   There are more bearish signs out there than bullish, as stocks continue to fall on heavier volume and rise on lighter volume, but we've seen this many times since 2008 and it hasn't necessarily mattered.

I do expect a big move one way or the other out of this consolidation, simply because this choppy range has had a lot of emotion involved in it.   Bulls and bears have really be fighting it out and when one side finally takes charge, I think the other side will be too tired and worn down to do a whole lot about it.

Do your work and be ready, but remain patient.   There is nothing to do yet and trying to guess where we are going to be tomorrow is simply that - a guess.  Take care. 

1 comment:

DrVanNostrand said...

Mac I am not sure how much volume means these days with the all the dark pools and OTC derivative transactions and Swaps that take place on the institutional side of the business. There are many other ways to put trades on for those guys. Reported volume may not be as accurate as it once was. Looking at the patterns of the indexes it looks like we are in a consolidation and the presumption based on Technical Analysis 101 is that we will see a resumption to the uptrend, but until we see that or the market gets split wide open cash is king.