Friday, August 22, 2008

mkt today

About Shark Watch

Friday, August 22 - 5:07 PM

Afternoon Comments

On balance, it was a pretty decent day for the bulls. Buyout speculation regarding LEH, a $6 pullback in oil, and positive comments from the Bearded One all contributed to the upbeat sentiment and solid, broad-based gains. That said, volume looks to have been the lightest of the year – at least on the Nasdaq, and possibly the NYSE as well – and that means it’s difficult to give too much weight to today’s move. Moreover, even though both the Dow and the S&P 500 were able to reclaim their respective 50 day moving averages, neither could make progress past what looks to be developing descending resistance trendlines.

Meanwhile, as we talked about throughout the day, the number of decent technical set-ups is dwindling. Most of the day’s biggest winners have the worst looking charts, and unless you’ve been doing some bottom-fishing, then chances are you underperformed today. This oil up/market down, oil down/market up pattern lately has made it terribly difficult to build positions, but is has resulted in an environment suited to the shortest-of-term traders. On our end, we’ll continue to take quick trades where we can find them, but until we see some real improvement in the pricing action, then we’ll continue to keep capital protection as our number one goal.

Have a great weekend and we will see you on Monday.

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