Early Momentum Fizzles Again

 | Dec 19, 2011 | 10:45 AM EST
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It is Groundhog Day. Once again, some minor early strength fizzles out, and there is no energy in the market. The market's biggest problem lately is that it can't generate any sustained momentum, and nothing has changed so far this morning.

We do have positive breadth, with about 3,000 advancers to 2,000 decliners, but the continued lack of leadership and momentum is the biggest obstacle to traders who are hungry for year-end action. Apple (AAPL) is up a bit, but other big-cap momentum names are doing nothing. Weakness in oil and banks is offsetting a bit of a bounce in technology.

I've had the same game plan in place for a while now, and I don't see any reason to change right now. I'm holding a very high level of cash and am waiting for more vigor to the upside before doing much. I believe we are going to see a decent bounce sooner or later, but this market is going to do a good job of wearing everyone out before it gives it a go.

I'm dinking around with a few small trades once again, but there isn't much we can do right now. Westport Innovations (WPRT), which is a play on natural gas as fuel for automobiles and trucks, is trying to move out of a base.

InvenSense (INVN), which is my stock of the week, continues to set up well, but like everything else in the market, it needs a kick to get it running. 

Columnist Conversations

I reached out last week to my close friend Ken Shreve, who is a prominent writer for the IBD.  I asked Ke...
I reached out last week to my close friend Ken Shreve, who is a prominent writer for the IBD.  I asked Ke...
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we will add this here to cheaply protect our downside a bit BOUGHT SPY SEP 244 PUT AT 2.70 ...



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