Thursday, December 10, 2009

Talk About Dullsville....

I'm running out of ways to describe how lifeless this market has been. Yes, the indices did post some okay gains, but volume was anemic and there isn't any leadership or momentum to be found outside a few big-cap technology names.

Even though the Nasdaq finished with a decent gain, breadth was quite negative, with about 1,040 gainers to 1,640 decliners. That tells us that money is flowing to a few big-cap names like AMZN, PCLN, RIMM and GOOG. Obviously, small caps are underperforming when breadth is that poor.

I'd really like to offer some better insight, but this market it is in no man's land, and until we see greater emotion and/or a break out of this trading range, it is just a coin flip. What is particularly difficult about this current trading range is that there is so little going on with individual stocks. There is a very limited amount of action and the few things I do see working tend to fizzle out quickly.

As I have been saying, this action isn't bad, it is just dreary and slow and not offering us many good opportunities. The indices are set up well for a move higher if they can generate better energy, but if the bulls don't get more active soon, then the bears may gain some confidence. Frankly, I'd just like to see a little more excitement, whether to the upside or downside, I don't really care. Any movement is better than what we have now.....

No comments: