Friday, March 6, 2009

Up; Down; Then A Spike Up In The Last 30 Minutes; Does Somebody Know "Something"?

It wasn’t pretty by any means, but a late, and surprising, round of what was in all likelihood short-covering allowed this market to avoid another miserable close. There certainly wasn’t anything in the internals to get excited about and there wasn’t any “Friday Surprise” to indicate that there’s something big coming down the pike to really get the bears nervous about overstaying their welcome. Indeed, the danger remains that these meager moves to the upside that have had the frustrating tendency to fail just as quickly as they start will allow this market to work off its oversold conditions by merely churning at the lows.

Perhaps what we saw in the final thirty minutes occurred because “somebody somewhere” knows something, and we’ll find ourselves with a big gap higher Monday morning to contend with as we digest some big news over the weekend. Or perhaps the big money had every intention of putting some money to work today and provide this market with some support, and only did so into the close to take advantage of even lower prices.

None of that is outside the realm of possibilities, but at this point, it’s pure conjecture. The only things we know are that this market has been completely unable to sustain any action to the upside and that we continue to face the same level uncertainly when it comes to the financials.

We’ll see if today’s late spurt higher can carry over once the new week gets under way. Given the nature of the action recently, we’ll simply have to wait and see how things develop.

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