In the Doldrums

 | Dec 03, 2012 | 4:55 PM EST  | Comments
  • Comment
  • Print Print
  • Print

After two days of flat action we saw a slightly bigger trading range today, unfortunately it was mostly to the downside. The market gapped up to start the week and then traded steadily lower all day. There wasn't any panic or a rush for the exits. It was just a slow and steady drip lower as market players were unable to find a good reason to buy.

Technically, the market became a bit overbought and dealt with overhead resistance, so some selling is probably healthy. The market needs to consolidate the gains of the last two weeks, which, ironically, were created when politicians made optimistic comments about the chances of a fiscal cliff deal.

What was interesting today was that the Republican counter-proposal hardly created a ripple in the action. A very brief move to the upside quickly failed. The market ended up closing at the lows with no real change in expectations for a deal. The market seems to recognize that we are going to go through these negotiations for a while and that there isn't likely to be a breakthrough until we are very close to the deadline.

The action is uninteresting and we'll just have to keep slogging until something shifts. From a trading standpoint, a little panic selling would probably help to shake things up. Unless there is surprise news, it looks like we are just going to continue drifting for a while.

Have a good evening. I'll see you tomorrow.

Columnist Conversations

There were nice reversal-type candles on the weekly charts of the major indices. The DOW and the S&P forme...
A number of stocks on my watch lists are attempting to form positive candles a key support levels. I noted th...
Lang:
While last week was a day to pull the plug and contemplate where the market was headed, I waited for some conf...
Shares of TSLA have formed multiple hammer candles at a key level of support defined by: the September head an...

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.