Although the indices mostly finished in the green, another weak finish marred the very uninspired action. The bounce had little life to it, and buyers were missing the confidence that had served them so well until this week.
Given how well dip-buying has worked you have to expect a few tries, but it has been so weak that it makes it look like just a matter of time before we roll over again and the selling accelerates. But that's just a feeling, and of course could be dead wrong.
The most notable action today was not in stocks but the strength in the dollar and weakness in bonds. That helped financials but hurt oil and commodities.
Option games culminate tomorrow, but many are increasingly concerned about the technical picture of this market. Perhaps that alone will keep the market steady.
It certainly seems like a time for increased caution. We have survived for a long time due to the kindness of dip-buyers and they no longer look like they are nearly as anxious to help out. But again, that perception could just be the end-result of options games being played this week. If a "bad" scenario arises, however, that will leave a lot of stuck bulls, who potentially will be the sellers who push us down further.
RIMM earnings are out and are slightly ahead, but the initial reaction is negative. Expectations may have been too high and now the after-hours players, at least, are selling the news. Tomorrow could be a different story however.
long RIMM
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment