A Stock-Renter's Market

 | Sep 02, 2011 | 1:09 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

jag

,

mfn

,

axu

Since the gap down to start the day, we've been sitting in a one-point trading range: 119.08 and 118.08 on the SPDR S&P 500 (SPY). The bulls have made a couple tries to break out to the upside but didn't have much energy, but they are lively enough to keep us from retesting the day lows so far. It should be a good setup for a last-hour move, when the machines kick into high gear.

Overall, the average stock is not acting well at all, and I don't feel much need to hurry up and start averaging into bargains. I'm afraid many of these things that have bounced recently are going to be retesting the lows we saw in August.

I continue to focus most of my energy on the gold miners. Jaguar Mining (JAG) and Minefinders (MFN) are in breakout territory, and silver play Alexco (AXU) appeals to me on the basis of some very strong-looking earnings estimates.  I expect continued talk about QE3 to keep a bid under precious metals, and I'll be looking to add to miners later in the day.

The important thing right now is to just be patient and stay selective. There is nothing to indicate that the market is ready to turn back up. On the contrary, the news flow, both in the U.S. and Europe, is going to keep many folks on the sidelines. The contrarians will be talking about what a wonderful time it is to buy, but fighting this sort of sentiment and the negative momentum is a tough way to make money. There are trades to be had, but you should be a renter and not an investor.

Columnist Conversations

Boardwalk Pipelines (BWP) popped nicely on today's opening. Units of this MLP hit as high as $16.26 before bac...
The owner of the NBA's worst team, the Milwaukee Bucks, has agreed to sell the club for $550 million. He bough...
Good Friday means the markets are closed tomorrow. If you have any April monthly expirations that need attenti...
Baker Hughes is trading at new 52 week highs this morning following the company's pre-open earnings repor...

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.