Not Buying the ISM Enthusiasm

 | Sep 01, 2011 | 10:39 AM EDT
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MFN CPIX AKRX

A slightly better than expected Institute for Supply Management report has the bulls feeling a little better, but the bears are fighting hard to fade the positive reaction. While the number exceeded expectations, it indicates that growth is at a near standstill. In addition, it also may influence the Fed to be not as aggressive with its policies, since it isn't a total disaster.

Technically I do not like this action or the mood at all, and I'm inclined to sell or short rather than look for buys. I have a few odds and end on my long list. Minefinders (MFN), a gold miner, is setting up nicely. Cumberland Pharmaceuticals (CPIX) and Akorn (AKRX), which are small biotechs, are trying to break out. However I don't see much momentum overall, so I'm not doing much with them.

I've covered most of my index shorts and positioned mostly in cash now. I'm anxious to be aggressive with some buys, but until there is better action I'll need to be patient.

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