Walking Away From the Cliff

 | Dec 14, 2012 | 11:08 AM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:




Traders are focusing on the poor action in Apple (AAPL) this morning, in large part because there isn't much else going on. The indices have a slightly negative bias, as does breadth, but it is just painfully slow. There is a lot of random action again as we remain on fiscal-cliff watch.

I've talked with a few fund managers who are shutting down for the year as they have little interest in trying to game the fiscal cliff. They don't like the idea of missing a relief rally if a deal is made, but it is just too difficult to do much positioning for the news.

What is particularly frustrating about this market is that there is so little trading action. In the old days, before the crash of 2008-09, some of my best trading came in flat markets like we've seen the last couple of weeks. The hot stocks would tend to stand out and I was usually pretty good at finding them early enough to catch a good move.

For some reason we no longer see the market act in that manner. My guess is that it has a lot to do with the exodus of individual traders and the move toward program trading that gives individual stock picking less weight.

There still is some hot action to be found but it's narrower and often doesn't last as long. A couple I'm looking at this morning are AVEO Pharmaceuticals (AVEO) and Synergy Resources (SYRG), both of which had some insider buying. Perhaps a macro is buying stocks on that basis. In any event, it continues to be a market offering little edge, so we just have to keep grinding and wait for something to happen.

Columnist Conversations

Equity futures were up slightly just before 9:30 PM Sunday night.
Spent a good amount of time with PayPal CEO Dan Schulman this week...and came away fully understanding why thi...
Has quietly taken a mini beating over the past few weeks. Might be worth a look on Monday given everything tha...



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.