Eschew the Circus

 | May 07, 2012 | 10:55 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


We have a little bounce action in the early going, but it's tentative as market players wonder if we really have fully discounted the developments in Europe. The election was fairly well anticipated but there is still much uncertainty about the ramifications down the road.

The dip buyers did a little reflexive buying on the bad news, gap down, which often works. But they have not gained any traction and we are rolling over a bit as I write.  Breadth was close to flat but is turning back down quickly now and is around 2,100 gainers to 3,000 decliners. Apple (AAPL) tried to bounce, but has fizzled and is back near flat and I'm not seeing any major theme buying at this point.

Small-caps are particularly troubling as bids are disappearing in many cases. There just isn't much interest in trying to catch them at this point with both the fundamental and technical pictures not looking too hot.

As I wrote in my opening column, the media is going to push you to buy and the whole Warren Buffett circus on CNBC certainly played up that theme. I see no rush and I wouldn't be at all surprised if we breach the early lows and see another leg down.

I've not made any buys so far today and I'm just going to stay patient and see how this plays out. Lots of folks are very anxious to think we are going to shake this off and recovery quickly. That seems to be based more on hope than anything else. At this point the market will have to prove itself before it sees any more of my cash.

Columnist Conversations

As far as TSLA is concerned, I still have a higher target above the market at the 409 area.  I stated in ...
The TLT setup discussed in my last commentary is a bust. Key support was violated and it violated the recent l...
BBY is getting smoked this mornings(weak forecast).  The stock is off 8% after opening the session with a...



News Breaks

Powered by


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.