The market has been able to bounce from its most recent bout of selling pressure. Selling pressure was intense and widespread as breadth levels got severe. So far we have seen very little in the way of accumultion despite today’s price advance volume simply was no where to be found. Even in the face of positive economic data including decreased level of jobliess claims as well as CSCO’s upbeat earnings failed to rally the institutional troops to move this market on volume.
It seems reasonable many fund managers who are sitting on cash would want to wait and see how the market reacts to the jobs report being released on Friday morning. Given the dramatic decline and the volume associated with it more than likely has many fund managers unwilling to step into the market prior to a “big” number. At any rate, we saw a bounce from extreme oversold conditions and we are now awaiting whether or not this market turns lower or higher. It is important to be able to respond to any market condition and we may be at a turning point where money can be made.
Until we get a bit more clarity we are mostly waiting in cash ready to pounce on any opportunity regardless if it is on the long or short side. We’ll continue to be patient and not overextend ourselves to be in a position of attack when the time is right.
Stay in tune with the market and forget the noise spewing from media outlets as they will cloud your vision. Stay positive and focused.
