Don't Force the Long Trades

 | Oct 31, 2012 | 11:00 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:




We have a slow and lumpy start to trading as market players struggle to get back on track. After the storm and a two-day shutdown, not too many folks are in tune with this action, so they are moving slowly and not doing anything too aggressive.

Breadth is positive, and the Dow and S&P 500 are in the green. However, the Nasdaq is under pressure again, primarily due to Apple (AAPL). Gold and silver are leading, but there is also some strength in regional banks and homebuilders. Oil, chipmakers and biotechnology are the laggards.

The problem this market encountered several times last week was that it opened at the highs and then drifted lower the rest of the day. Unfortunately it looks like that dynamic is playing out again Wednesday. There just isn't any reason to be building positions while the market is acting this way.

I have little going on but I did add to a position in Nam Tai Electronics (NTE), which is a Chinese contract manufacturer I've discussed before. The stock has been basing for more than two months now, and is trying to gain sufficient momentum for a breakout.

Other than that, I have few things of interest on my screens. In particular, I am keeping a close watch on the silver stocks, which have some constructive charts -- but, until the overall market acts better, it just won't pay to force the long trades.

Columnist Conversations

With the new month upon us it's looking like a repeat so far of August. Yet, many were 'hoping' for different...
This GPRO is just blazing HOT in the last week, jumping 25% or so since last Wed. I noted it a few times prior...
Market opens open to begin the holiday shortened trading week. Energy could be weak as both WTI and Brent dow...
Norwegian Cruise Line Holdings (NASDAQ:NCLH) bought Prestige Cruises International for $3.025B. Prestige owns ...



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.