Under Pressure

 | Nov 15, 2012 | 11:22 AM EST  | Comments
  • Comment
  • Print Print
  • Print

Once again, the bounce buyers are anxious to catch some upside but they are pressing too hard and as soon as the market falters, they will look to escape, which keeps the pressure on.

The big problem bounce buyers face is a relief rally, which seems painfully obvious, but any upside move is quickly flipped to death. We'll eventually see a better bounce, but it isn't going to happen until the market makes mincemeat out of folks who think it is going to be easy time.

Apple (AAPL) continues to be a major drag as it quickly failed to bounce again. Oil is the best-acting group this morning, which is probably a function of the growing tensions in the Middle East. If you are looking for strength, the best you will find are weak oversold bounces in random names.

I continue to see no reason to build longer-term positions now. I'm dinking around with ProShares Ultra S&P 500 (SSO) just to stay occupied, but I'm not at all confident that this market is close to a bottom. In fact, a bounce may be what sets us up for new lows next week.

Stay focused on protecting capital. Trades should be very short term with tight stops, and if you are anxious to buy for the longer term, make sure you leave plenty of room to average in further.

Columnist Conversations

PLUG is trading $42.41, down small with IV30™ up 0.2%. Conclusion PLUG is not in equilibrium... It cann...
So far we're seeing a nice counter-trend rally off time/price. If you are in this one, please trail up stops ...
Deere & Co is holding near key support as August comes to a close. The stock first tested the initia...
With just under 2 hours left in the trading day the markets are relatively flat, trading off the lows experien...

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.