A Transitional Feel

 | Mar 04, 2013 | 1:30 PM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:






The choppy action gives the market the feel that it is in a transitional phase. Market players are struggling to make up their minds and that is producing back-and-forth action.

There is a negative bias to the movement but sufficient dip buying to prevent the selling from gaining real momentum. We've had some weak closes lately, so we'll see what develops in the final hour. So far, neither bulls nor bears are really asserting themselves.

Traders are having some luck with the mortgage insurance group, including MBIA (MBI), Radian Group (RDN) and MGIC Investment (MTG). Other than that, I don't see any other themes of interest, which tends to happen in transitional phases.

Keep in mind that a transitional phase doesn't necessarily mean that a major downtrend will develop. The market could regain its footing and trend to new highs, but the feel of the action is that there is a desire to lock in gains and to look for entries at lower points.

I'm under the weather today so I'm doing little. One important rule of trading is to limit your action when you are not feeling physically and mentally sharp, and am following that advice.

Columnist Conversations

A gravetone doji candle formed on the weekly Facebook (FB) chart. This candle is defined by a narrow opening a...
The iPath Bloomberg Sugar SubTR ETN (SGG) is pushing up towards a test of its prior rally peak at 33.94, which...
We added some call plays on Microsoft and Celgene today on the very strong price action (msft) and flow, and t...
Juniper Networks is the number three gainer in the S&P 500 today(behind Amazon/Microsoft). The stock...



Columnist Tweets


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.