Solid Action but No Momentum

 | Jan 14, 2013 | 4:25 PM EST  | Comments
  • Comment
  • Print Print
  • Print

Despite the poor action in Apple (AAPL), the indices held steady and breadth was close to flat. There continues to be solid underlying support but buyers aren't as willing to chase. While the action was solid, there wasn't much momentum. We had a few short squeezes but a dead-cat bounce in precious metals was the best sector action.

While it wasn't a very interesting day for traders, it was healthy that we consolidate a bit more going into the bulk of earnings season. Flat action now gives us a good foundation for the next move.

I suffered a few nicks today and cut back some positions as a result, but I still don't see any reason to be overly negative about the market. There is the usual long list of reasons to hate this market that put forth by the bears, but we should all know by now that there is no way to time when the negatives might start to matter. Right now, the price action continues to be productive and until that changes, I'm going to continue to give the bulls the benefit of the doubt.

My biggest concern now is that I'm not seeing much new to buy. That forces me to hold more cash, which is sometimes a good warning sign, but I don't see any reason yet to believe the market is about to collapse.

Have a good evening. I'll see you tomorrow.

Columnist Conversations

HLF closed Wednesday trading at $43.63, down small with IV30™ down 3.2%. Conclusion HLF is down 40% sinc...
The Russell 2000 has led the broader market lower and today it returned to its 2014 lows, the bottom end of a ...
Here are the next potential support decisions to watch in SPX cash. Note that the current decline is only sim...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.