Fingers Crossed for Some Stabilization

 | Dec 14, 2011 | 10:27 AM EST  | Comments
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Stock quotes in this article:

gluu

,

cool

The market had a nice little "suck-in" to start the day, with early broad strength having been quickly sold. Once again, the aggressive dip-buyers moved very quickly to the wrong side of this market. Those quick little wash-outs really cause negative sentiment to spike, but that is what's needed in order to help set up some sort of roll-over.

I continue to see little evidence that the indices are about to turn back upward, but the first step would be holding above the first-hour lows. If the market stabilizes for a while, we should start to see some buyers inch back in. Right now there is very little trust because the action has been so poor. It will take some time, and positive action, for that trust to build back up.  

Meanwhile, I'm just dinking around with some smaller trades while I wait for the chance to buy bigger positions more aggressively. I see no reason to be an aggressive buyer right now.  

One theme I'm watching today is gaming stocks. Zynga is set to debut tomorrow, and if it prices strongly there should be sympathy action in such names as Glu Mobile (GLUU) and Majesco Entertainment (COOL). I have positions in these and am waiting to see if they start attracting some attention.

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