Friday, August 29, 2008

About Shark Watch

Friday, August 29 - 4:00 PM

Afternoon Comments

If we disregard that quick dip and pop that we saw during the New York lunch hour, the major spent the majority of today’s trading session in a very narrow range. However, we began to lose some steam as we worked our way though the final hour as consumer discretionary and financials saw some selling pressures. The trading was very thin, and that has led to some whippy action, especially in solars which proved to be a decent trading vehicle over the past few days.

While we did see some decent short-term trading, there’s no use trying to read too much into any of the action this past week. What we need to do is remain cognizant of the fact that we are still in a bear market and make sure we refrain from taking part in the whole market prediction game. The market will tell us if conditions are improving, but at this point, the bigger picture remains very poor. The good news is that the indices were able to avoid more technical damage and essentially finish out the month of August in a lateral channel.

We’ll be going over the chart this weekend and keeping an eye on individual names to see how they act on a dip, but we still see no reason to be making any big moves in what continues to be a difficult market.

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