Running In Place, Stocks Fail to Gain Any Ground
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Monday the NASDAQ undercut its most recent rally attempt’s lows reseting our confirmation rally. Tuesday’s action failed to re-ignite a new rally attempt. Volume was on the light side as NASDAQ volume fell roughly 2% while on the NYSE we saw higher volume. This market continues its “no man’s land” path. Overall, this market does appear to be a bit oversold at the moment and good news is that we haven’t been able to accelerate to the downside. However, upside seems a bit LAME! Until a clear direction in this market is set, its best to step aside and let others waste their time.
Times like these the greats would be having a vacation. The lack of interest from large institutional players leads to lackluster markets like we have here. So many stocks are breaking out and failing that it leads me to believe that the sidelines are the best place to be. Now, can we survive the inactivity from the markets? If one stays disciplined than we can certainly survive. The real issue in this market is finding an edge and many do not have one. I for one, do not have a huge edge and why I am more than 50% cash. Trying to overcome not having an edge will destroy a trader both physically and mentally. Be sure you avoid that path!
A stock on my radar: WIND
Enjoy
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Disclosure: Author does not have a position in WIND
Last 5 posts in Market Commentary
- Three 2009 Stock Market Predictions - January 4th, 2009
- US Dollar Woes? - January 1st, 2009
- Merry Christmas! - December 25th, 2008
- Stocks Slide on Low Volume - December 23rd, 2008
- Santa's Rally Still Intact; Stocks Continue Moving Higher - December 20th, 2008
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