Today was a non-event. After yesterdays huge run up the market took a time out. Stocks opened weaker and spent the entire day in the negative. Loses though were subdued with the major averages down less than 1 % throughout the day. The last hour brought, as has been the case so often lately, some buying into the market and the Dow closed the day down just 16 points or - 0.19 %.
Consolidation was the name of the game today. Stocks spend the day in the recovery room...meaning that they tried to find some base after yesterdays run up.
Bernanke spoke today and his comments were actually somewhat upbeat. He basically said it will be bad for a while but that the worst is over and, in his opinion, it won't get as bad as it was earlier in the year anytime soon.
So...good news all around today. (no news is good news)
The markets seems to be gearing up for the release of the stress test results on Thursday and I do not expect much action till then.
As I have said yesterday...momentum should carry prices higher but beware a climatic event. (i.e. stress test). I have this suspicion that no matter how the stress test results are some people will use it as an opportunity to take money out of the market.
Let's see how tomorrow goes. I am neutral the market and expect some form of pullback. Until this has happened I will stay out. Aggressive investors can buy some puts here.
See you tomorrow,
Steve Benger
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