News of more rescue efforts by the International Monetary Fund and coordinated efforts by France and Germany to save Europe finally has us bouncing a bit. It isn't very lively, but the bulls are trying and may be able to generate a bit of a squeeze as we test the highs of the day.
Typically, the mood around Thanksgiving is upbeat, but the vast majority of traders I talk to aren't feeling much love for this market. It has been very tough for many of them to make progress and they are feeling quite frustrated. The persistent negative news flow doesn't help much either.
Ironically, the sour mood and the negative news is probably the biggest positive this market has going for it. Market players are not well positioned for a strong move, and if we do finally see some momentum there is going to be some chasing as well as short covering. We just need to shake off this ennui and see some green. Traders are anxious to do some long trades but they need strong action to draw them in.
The biggest challenge I see is that there aren't a lot of long vehicles that I like. You can always use the exchange-traded funds or big-cap favorites like Apple (AAPL) or Google (GOOG), but it is very challenging to find good technical action in individual stocks.
One that I've mentioned in the past that I continue to like is Flotek (FTK). An analyst gave it an $18 target Monday, and it has been holding well following a good earnings report.
I don't see much else I want to chase, so I'll probably stick with some ETFs if the bounce I'm anticipating starts to kick in.