Building a Wall of European Worry

 | Dec 12, 2011 | 4:21 PM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


We can sum up the action today in one word: dismal. We gapped down to start the day on worries that Europe really hasn't resolved anything, and we had nothing but the standard bounce in the final hour of trading on European news. This time it was talk from the German Finance Minister that Commerzbank does not plan to take state aid.

The dip-buyers were completely uninterested for most of the day, breadth was weak and volume was pathetic.  We even had an earnings warning from Intel (INTC) to ensure that the mood was particularly gloomy.

The good news is that sentiment is so poor and the market so frustrating that many folks are likely to be underinvested and now well positioned for upside from here. If we can actually gain some traction, it would likely cause quite a bit of scrambling and chasing as folks tried to add some long exposure. We definitely have conditions for a major wall of worry, but few signs that we are going to climb it.

There are some decent charts out there, but volume is running so light and the market is so lacking in energy that it is tough to be aggressive. If we can forget Europe for a few days, the bulls could probably get something going, but the choppiness of the action is keeping most folks very short term.

It definitely was not a very good day for the bulls, but I'm staying optimistic about our chances for some upside action soon. If we can put Europe aside for a little while, there are some charts out there. If there is a little more energy, the desire for some end-of-the-year profits is likely to drive things. The key is that we actually ignore Europe, and that seems to be an impossible task lately. Despite the dismal action today, I'm keeping a positive mind set.

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

Columnist Conversations

volatility is quite low here, and we could see some downsides here in the short term. ...



News Breaks

Powered by


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.