Thursday, August 21, 2008

mkt today

About Shark Watch

Thursday, August 21 - 4:35 PM

Afternoon Comments

After a very ugly open and a $6 spike in oil, the bulls were able to battle back and take the indices into mixed territory into the close. Once again, energy and materials were the big winners on the day, but the mid-day turnaround was broad-based, with industrials and consumer discretionary able to post solid gains on the day. Moreover, even though financials, tech, staples and healthcare were the day’s losers, each of those sectors were able to finish well of the lows.

Certainly, the action today was a lot better than it could have been, but once again volume was very light. In fact, it was the lowest we have seen all week. Without a doubt, we’ll be hearing from so-called experts who will tell us that the market is ready to resume its intermediate uptrend. However, today’s action did little to repair the technical damage we saw earlier this week. There has so far been nothing to indicate that we have seen any sort of meaningful low, and it’s not likely that we’ll get any such signs in such a thin trading environment. We need to stay patient, refrain from listening to any bold predictions, pick our spots carefully, and wait for the pricing action to come to us.

Have a great evening and we will see you tomorrow.

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