Cheering for the Bears in This Bloodless Battle

 | Apr 19, 2017 | 1:25 PM EDT
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Most of the time stock market battles make for interesting trading, but the one that is currently occurring may put you to sleep. The bulls and bears have been taking turns moving the market around, but what is missing is any strong emotion. Instead of a real fight, they are just taking turns pushing the market around for limited amounts of time.

The bears have had a slight edge lately, as technical support around the March lows is beckoning, but the bulls keep coming back with dip buying and strong closes. Neither side is pressing when they have an edge, but what tends to happen is that the opening move is reversed.

As I write, the indices are hitting intraday lows after a gap up, which is the direct opposite of what happened yesterday following a gap down. If you have a timeframe of an hour or so, you may enjoy trading this sort of action, but if you want to carry something overnight it is very difficult.

Emotion is what makes for interesting trading -- and we are missing it. We have bloodless computers pushing things around for minor moves and no strong trend. I keep rooting for a breakdown, because it is the only thing that could stir up a strong reaction.

I've made a few small buys today, but my cash levels are around 75% or so. I'd love the opportunity to really press an index short -- and with a weak close today, I may take a bigger step in that direction.

The market is weakening and I'm cheering for the bears. This battle isn't going to be much fun until there is some damage done to the bulls.

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