Today's Close Will Be the Real Test

 | Jan 30, 2013 | 2:51 PM EST  | Comments
  • Comment
  • Print Print
  • Print

The Federal Open Market Committee (FOMC) policy statement isn't having too much impact on the market. So far, there has been a slightly negative reaction due to the comment about economic activity pausing. The Fed chalks it up to weather and "other transitory factors" but the important thing is that they will continue to run the printing press and buy more bonds. There is no indication yet that the Fed is even thinking about unraveling any of its quantitative easing efforts and it is still unconcerned about inflation.

Despite the benign Fed, the market has been losing energy today; the small-cap indices are actually seeing the weakest day of the year. Since we have barely seen a downtick, that isn't a very high bar -- but it is a slight change in market character. The action on my screens isn't bad but it isn't very energetic either.

The real test will be the close. As I have pointed out a number of times, this market has not had a weak close all year. If and when that starts to change, my caution level will increase quite a bit.

I have a few small things of interest that I'm looking to buy, but I keep cutting things that are moving and my cash levels are growing. 

Columnist Conversations

Volume in the SPY today was nearly double its 50 day average of volume. (The graph at the bottom of the chart ...
Is this the biotech revolution or the biotech bust? View Small Cap Biotechs Like Never Before: Transparency is...
Market got beat like a rented mule today as equities posted their second worst day of the year. Geopolitical ...
down 302 now, at 16577 the dow 30 is unchanged for 2014. roll the media hype!

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.