More Than a Gut Feeling

 | Feb 12, 2013 | 4:32 PM EST  | Comments
  • Comment
  • Print Print
  • Print

Apple (AAPL) kept the Nasdaq in the red, but the other major indices managed gains. Breadth was pretty good at about 3350 gainers to 2070 decliners, and banks and homebuilders provided leadership. But under the surface, there were quite a few reversals and the market closed on the weak side. I found the action in many individual stocks troubling and I didn't feel very good about the way it moved today. The midday spike felt frothy and manipulated and there was just too much red on my screens.

I constantly preach that we shouldn't anticipate a market top but I didn't have a good feeling about the action today, although there weren't any glaring negatives. Many market players think that tonight's State of the Union address might be the catalyst for a top, but I see no reason to jump to that conclusion.

I have to admit I'm finding it increasingly difficult to stick with longs as this market floats higher so I'm rooting for some downside, but I don't want to let my hopes color the way I view the action. As I've often said, markets at their highs don't just suddenly reverse and fall apart. Tops are a process that take time to develop and there are still few signs that things are about to turn.

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

Columnist Conversations

Chipotle noted on its earnings call that it's having some difficulty securing prime real estate for its namesa...
Manpower Group's (MAN) third quarter EPS came in at $1.61 v. $1.18 year over year on a 4% revenue increase ($U...
Lang:
Many have talked about the recent challenge to the 200 MA of the SPX 500 and how it closed for the first time ...
Earnings have been reasonably positive so far. But more than the actual results, it will be the tone of the co...

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.