The Worst Sort of Action

 | Dec 03, 2012 | 2:45 PM EST  | Comments
  • Comment
  • Print Print
  • Print

It has been said that the opposite of love isn't hate but disinterest, and that seems to be the dominate emotion at work in the market today. Once again, the action isn't that bad. It is down a few points and breadth is weaker, but there isn't any big rush for the exits. The market is just drifting around with a slight negative bias.

From a trading standpoint, this is the worst sort of action. Strong emotions, either positive or negative, are what produce tradable action. Even in flat markets, there are usually pockets of action that attract the hot money, but there isn't anything of significance today.

Quite a few commentators have predicted that the fiscal-cliff debate would produce a high level of volatility. Instead we have been frozen. Virtually everyone seems to think a deal will eventually be made and that the political back-and-forth in the meantime is irrelevant. There isn't much reaction at all to the news flow, which really is the correct response since none of it is meaningful right now.

I see little to do but to stay patient and keep looking for new ideas. The good news is that flat action like this is often a setup for a strong move. We just need to make sure we don't fall asleep while we wait.

Columnist Conversations

Market posts the third day of solid gains in a row. Will see if we can make it four a row before the long hol...
With the averages now flying upwards, with everyone scrambling to buy, it is startling to remember how palpabl...
Inability of Bank of America (BAC) to claw its way above 16.30-.40 resistance will increase the likelihood tha...
The Fed works for the government. The Federal government owes over $16 trillion. The Fed will likley never rai...

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.