Perhaps traders are suffering from a weekend hangover as stocks close lower in very light trading. Volume was lower across the board and below average. We actually need a few days where the market moves very little and volume is light. We have come quite a ways from a few weeks ago and these gains need to be consolidated. Leading the S&P 500 lower were Utilities, Materials, and Industrials. Energy despite the losses in crude was the S&P 500’s leading gainer for the day. Small caps lead the entire market lower, but after the gains Thursday and Friday it was not a surprise to see these stocks leading to the downside. Not a bad way to start a week after the move off the lows from last Wednesday’s session.
Do not over complicate this market or try and be a hero. We see it too often where traders try and overcomplicate matters. We are not seeing overwhelming bullishness across the board. In fact, for the most part we see many who believe this market is doomed. While the White House changed its occupant the level of distain for this market has yet to change. When this will change is anyone’s best guess. However, it will probably take a while or we just need the Federal Reserve to fumble monetary policy. At some point this market will turn sour and we’ll adjust accordingly. Until that time, we will continue to plow forward regardless of what the talking heads believe.
Not much to complain about here as these quiet days are needed. Keep those losses short.
