Price Action Is Unappealing

 | Apr 30, 2012 | 2:32 PM EDT  | Comments
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The market has essentially flat lined since the morning lows, but so far we are holding above support (although it does like quite precarious).

Volume is running light, breadth has stayed around the 2-to-1 negative levels and Apple (AAPL) hasn't managed any sort of bounce so far. The point losses in the indices aren't huge, but the lack of energy is worrisome.

The bullish spin here is that the market was oversold and in need of some rest. The fact that the selling is so mild is a positive and with the S&P 500 back over the 50- day simple moving average we are looking technically healthy.

The bearish spin is that the weakness today is an indication that weak economic data does matter and the market is starting to pull its head out of the sand. A couple good earnings reports helped last week, but the headwinds are building into the monthly jobs report on Friday. With earnings season winding down there just aren't any likely positive catalysts on the horizon and the old adage about selling in May is going to gain traction.

I'm leaning more bearish than bullish here mainly because I don't find the price action I find very appealing. We had an unconvincing accumulation day last week and finding good momentum is very tough. Amazon (AMZN), Monster Beverage (MNST), Priceline.com (PCLN) and a few others are doing OK but if you are looking for some strong leadership it is tough to find.

I'm staying focused on individual stock picking and will let that determine if I'm in or out of the market. One name I'm looking to add into the close is TGC Industries (TGE). They provide three-dimensional seismic services for the oil and gas industry and posted earnings of 60 cents a share vs. a single estimate of 36 cents. Revenues grew 33% year over year. Current estimates are likely to come up substantially, especially since the company still has a large backlog of business.Given the valuation I think this one can continue to move higher from here.

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