Dip-Buyers Shy Away

 | Jan 13, 2012 | 10:45 AM EST  | Comments
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The dip-buyers gave it a brief try, but it was too obvious of a play, and the news flow is just too problematic. The weak JPMorgan (JPM) report is an issue, but the chatter that downgrades of euro zone countries could occur at any time is the primary problem.

The market never likes uncertainty, and Standard & Poor's is creating a good amount of it with this vague talk. If we don't see the downgrades today, who will want to load up in front of a long weekend with the potential that we could see this news early next week?

Reports are hitting that France and Austria have been downgraded, but it is only one notch, and we are bouncing back a bit. We'll see if we have some buy-the-news action now, but my confidence in the dip-buyers is low today.

We are due for a trend down day, and I'm just going to stay out of the way and am not going to attempt to bottom-fish at this point. As I wrote this morning, I don't like the setup into earnings season, and this S&P news is just adding more instability. We have had a good move to start the year, and the inclination to protect gains along with the news uncertainty is likely to prevent the dip-buyers from being as aggressive.  

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