Friday, March 26, 2010
A Boring Day
That was a painfully boring ending to the day. There was a bit of life in the energy plays and gold miners toward the close, but I think that was a combination of some shorts taking profits off the table and a few bottom-fishers. All in all, the market was a bit weaker than I thought it would be, but all it did a whole lot of nothing, which was my other thought. I believe this sets up a very interesting Monday and Tuesday. As of late, most Mondays have been strong, but two of the last three have been flat with the other being higher. The month and the quarter are coming to a close, and "tape-painting" may be all but done. For those that care, the technical picture is much more muddled now and even showing a few bearish divergences. Going into the week, it was obvious that someone would have rather been long than short. I'm not so sure that is the case now right at this moment. It's not that I feel people would prefer to be short; however, I believe the complacency and comfort of being long is no longer as strong. We spent the last four days in a fairly tight range, which leads me to believe we are setting up for a decent-size move in the near future. Anybody else notice the slow press releases on the charges that companies are taking in relation to the health care bill? T is taking a $1 billion charge. That's a "b" for billion. This isn't the first company I've seen make such a release, but that number was glaring. I'm not sure how charges like this are going to help recovery in the short run. Although I'd prefer to have some brilliant strategy to lay out for next week, or some witty anecdote to throw out right now, it just isn't there. That's how painfully dull this afternoon's action was. It just sucked the life out of me. Time to rest up on the weekend. Catch up on some research, have some fun and see what next week brings us.