I guess we shouldn't be surprised, but news that the European Central Bank doesn't have any magic pill for what ails Europe is keeping pressure on the market. What is surprising is that despite months of dancing around to European headlines, we are still reacting to it and are incapable of pricing in the negatives. Perhaps there is too much uncertainty for the market to discount it with any precision, but at this point, you would think we'd at least being making progress.
I see little to do but continue to wait and see if we can shrug off Europe and generate some good old-fashioned, end-of-year action. We need some jolly, eggnog-fueled traders to light up a few names and start a little party. There are plenty of folks sitting around, waiting for something to do, and it isn't going to take much to draw them in. We just need to ignore Europe and stop acting so dead.
The bad thing about this action is that the longer it continues, the more likely that trapped longs and premature bulls will sell into strength and keep short-term spikes contained. So many folks have been looking for end-of-year action and are now worried it won't occur that they will be happy to lock in some fast gains if we do manage to rebound a bit.
Still no signs of Santa, but I'm not ready to give up on him yet.