Momentum Is Missing

 | Oct 12, 2012 | 11:08 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:












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.

Columnist Conversations

Reports on Tuesday. I am getting a little concerned on how the 2015 guidance will come in.
Soz doing some more good stuff on retail today-- I loved the JCP piece.. Remember you can follow a writer now ...
Despite a big upgrade from Credit Suisse(from Neutral to Outperform)FDX is relatively flat today. The st...
The Market Vectors Gold Miners ETF (GDX) chart continues to exhibit characteristics of a classic cup-and-handl...



Columnist Tweets


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.