The Need for Fear and Greed

 | Feb 15, 2013 | 4:02 PM EST  | Comments
  • Comment
  • Print Print
  • Print

The most notable thing about the market this week was that none of the major indices moved even 1%. It was one of the deadest weeks of action that I can recall, and it was downright exhausting. What made it even more difficult was that plenty of stocks continued to drift upward and we had a big supply of new highs, but it was lacking in energy and random at times. There were no big pullbacks, but there wasn't any momentum either.

The bears will tell us that this flat action is an indication of greater uncertainty and a sign that the market is going to start rolling over. The bulls say that this is just very healthy consolidation after a good run and is a great foundation for further upside.

I'm not sure who is correct but I'll take a big move of any sort at this point. What we need more than anything is stronger emotions and greater volatility. I believe the lack of passion is more dangerous than anything for traders. We need good old-fashioned fear and greed to move things around. The opposite of love isn't hate but disinterest and that is what we have in this market.

Unfortunately, the market doesn't much care what any of us might prefer. We have been given a very slow market and we have to find a way to deal with that until conditions change. The key is to accept what is and not waste time or energy focusing on what you would prefer happening. The good news is that the one great certainty about the market is that things will eventual change.

 Have a great long weekend. I'll see you on Tuesday.

Columnist Conversations

As of 9;38 AM Knowles Corp. (KN) was up $1.14 per share (+ 5.65%). Real Money Pro readers were alerted to this...
Markets look set to open this holiday shortened trading week slightly up based on current futures. Lots of goi...
High yield bonds have had their worst year in the last 10, according to capital flows data analyzed by Bank of...
The prominence (and amount of) of the discounting in the malls this weekend has been very noticeable. One are...

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.