It was another day of very lackluster holiday trading. We didn't have any big rush for the exits but there was a slow drip of selling all day and no real buying interest. What bothers me most about this market is that there hasn't been any real trading action. Normally in thin trading like this there are a few things of interest, but traders don't seem to have any interest, which means we don't have any pockets of activity.
This has been going on for weeks but the only thing that continues to matter in the near-term is the fiscal cliff. We had selling pressure today because there was no news of any progress. In fact, there seem to some worries that the politicians won't even manage some limited deal to kick the can down the road for a few weeks.
I believe many market players are just weary of this issue and many have decided to shut down and not even bother with this market. That makes for a dreary market, but it does set us up for the potential of a positive surprise on any good headline. I believe there is a good chance of positive news in the next few days, and I'm staying vigilant.
I definitely do not want to be short this market but it is extremely difficult to put cash to work unless you just want to pile into an index play or a big-cap. Finding chart setups, especially when the volume is so thin and the action so dull, is very difficult.
We'll just keep on watching and waiting. The one thing we can be sure about is that conditions will eventually change.
Have a good evening. I'll see you tomorrow.