Rooting for the Bears to Generate Momentum

 | Mar 20, 2017 | 1:55 PM EDT
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It is a good thing for the business channels that they are showing the Comey hearing today, because they would be struggling to find something to say about this market. Once again, it is very dull and slow action, with indices barely moving. Breadth is poor, with around 2,850 gainers to 3,800 decliners, but we still have a healthy number of new 12-month highs, with over 400.

As I discussed in my prior post, most of the best action is in biotechnology. There are trades working in that group, but I feel sorry for anyone that is focused on index trades. Unless you are content with trading for pennies, there simply isn't any action.

Traders take solace in the argument that these tight trading ranges are setups for big moves, but we saw last summer that the market can stayed pinned down for a very long time. On Friday morning I discussed how the flat markets that we see these days are much different, and offer less opportunity, than they used to. Pockets of momentum are very sparse compared to what used to occur prior to the crash of 2008-9.

The S&P 500 is rolling over to day low as I write and, frankly, I'm rooting for the bears to generate a little momentum. We are not going to be shaken out of this lethargy until we have a little drama. We need strong emotions, and the best way to do that is to put some fear of the bear in a few folks.

I may add to some of the biotechnology names if they hold up into the close, but if we close near the lows I'll be looking at adding index shorts instead.

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