Wednesday, March 31, 2010

The sellers waited until the last 90 minutes of trading, but we finally had some end-of-the-quarter profit-taking. Usually they don't wait until the very last minute, but with the way this market has been acting, no one has been in a rush to recognize gains. The uber-bulls might love this action, but this has been a tough market for just about anyone else. The bears are finally getting a late-day fade, but they have surely earned every penny of it. For the trend-followers and momentum mavens, this market has just been too extended and too lacking in strong emotions to be aggressive. We consistently have upside follow-through in the indices, but it has been lackadaisical and mixed as to individual stocks. The weak finish today was a slight change in character, but it is tough to draw any conclusions when we have end-of-the-quarter pressures at play. The trend is still up, and we haven't broken any important support levels, but we are still extended and in need of a better shakeup to reset things. There usually are some cash inflows at the start of a new quarter, but since we have only one day before the long weekend, I suspect the trading is going to be very quiet tomorrow. The bulls are still in control of this market, but there are an awful lot of market players who don't seem very happy with this action, which is offering so few opportunities.

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