Momentum Is Missing

 | Oct 12, 2012 | 11:08 AM EDT
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Market players were hopeful that a soft open might result in better intraday action than we saw after the hot open we had yesterday, but once again we have very little buying momentum. There are a few bounces in things like Apple (AAPL), Baidu (BIDU) and IBM (IBM), but there's no big rush to build positions. Market players are wary, and the very tepid response to earnings from Wells Fargo (WFC) and JPMorgan (JPM) isn't helping.

The biggest danger in this sort of market is in being too aggressive when trying to catch quick bounces. You have to recognize that most of the buyers don't plan on sticking around, and then it becomes a race to see who can flip for a quick profit the fastest.

What is unquestionable right now is that the character of the market has changed for the worse. The dip-buyers are showing little interest, strength is being sold, and oversold conditions are being ignored. Folks are now more concerned about finding exits than they are about finding entry points.

I'm still watching Sarepta Therapeutics (SRPT) for a possible bounce, but the market conditions aren't helping at the moment. Other than that, cash is looking pretty good, especially as we test the lows of the day again.

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