Can It Last?

 | Aug 31, 2011 | 4:32 PM EDT  | Comments
  • Comment
  • Print Print
  • Print

The bulls managed further upside this morning on mediocre but better-than-expected economic reports, but a few cracks appeared mid-morning and we trended down the rest of the day.

We had decent breadth and the indices closed green, but the action under the surface didn't feel very positive. There were a few big reversals in names that have led recently -- Apple (AAPL), Hansen Natural (HANS), Baidu (BIDU), Coffee Holding (JVA) -- and plenty of stocks closed well off their intraday highs. Of course, the computers kicked in again in the final hour and spiked us up, but the sellers gained a foothold in the afternoon.

The problems the market face are the same ones at the close yesterday. We are extended on low volume and running into overhead resistance. We've had a good run and the bulls want to keep pushing, but with the month coming to an end and good recent profits, there are folks who will be looking to cash out.

I don't want to be overly negative here as there is some support around the 1200-1205 level. A little backing and filling here would be very helpful in creating good entry points. I don't see a whole lot to be excited about on the long side, but that could change fast if we shake out some overexcited bulls.

It was an odd mix today, and if you are struggling to sort it out, you aren't alone. Just stay patient and observant and the trades will eventually come to you.

Have a good evening. I'll see you tomorrow.

Columnist Conversations

GS has cleared the important hurdle on the way up which increases the odds for an eventual rally towards the 1...
A good quarterly report has sent shares of Calamos Asset Management (CLMS) sharply higher. CLMS was up about ...
Electronics distributor Ingram Micro (IM) reported better than 16% growth in its Q3 sending the stock up about...
Market posting decent day considering Ebola getting headlines again. Believe investors have learned not to pa...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

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.