Sunday, December 20, 2009
ENTANGLING: UNFAVORABLE MARKET CONDITIONS
RANGE COUNTER: 27 DAYS
Range counter is at 27 days now. We had a much larger bounce off support from the NASDAQ futures than we did from the S&P futures mainly due to several large moves from the technology sector, namely RIMM, ORCL, GOOG and the NASDAQ listed biotech CELG. The S&P futures barely moved. The volume was very heavy due to the last option expiration for the year and S&P rebalancing. The volume of the NYSE hit its highest level of the year with over 3 BILLION shares traded. Usually high volume can mean something but not necessarily on this day. In other words, the trading day can be interpreted as a non-issue. Still stuck in the range. Nothing new. Is a Santa Claus rally still in the cards? Sure. Anything can happen in the market and often does. Should we trust it? Never trust the market to do anything. Trust yourself that you will do the right thing no matter what the market does in response. With the financials trying to find support along with some pullbacks from the recent lows in the energy sector we could have a rally just on the pullbacks and the breakouts in other sectors, such as technology. Our current plays are still advancing, declining, and doing nothing. A mix that mirrors the market: entangling. Maybe when I get back from vacation I can remove the range counter??
