{+++}There was a very tight range today, a dead calm if you will. The Fed rate decision came on time at 2:15 and we popped a bit, but couldn’t get anything going. Perhaps a hangover from yesterday was all it was, but the market looked worn out today. The bulls need a rest, but the bears still CANNOT have a meaningful follow through day to the downside.
HP is buying PALM and BIDU had a big number after the market closed and was up about $80 last I checked. Oil and materials bounced a little bit and gold was down slightly. The financials bounced slightly too after getting clobbered yesterday. Technology was mixed and GOOG and AAPL were essentially flat.
We tested the 1180 level yesterday and today. I said that 1188 was key , but not as significant as 1180. That level needs to hold short term. The market is either ready to roll over, or it is pausing for a move back up to the to the 1220 level and beyond. When the market starts to fizzle like this, the case can be made that the easy money has been made for the short term, it also could just be yet another buying opportunity.
Tough call here, as there are many many stocks hovering slightly above or below their 50 day moving averages and that makes it hard. I won’t waste your time or money, so until this sloppiness corrects itself, the recommendations will be light. Europe is imploding and contagion is happening even though the PM’s of all these messed up countries say everything is fine. That fear could spread and that will effect our market, right now we are just blowing it off.
We should have kept the EWP and SOHU shorts. See you tomorrow. If I release a new recommendation intra-day tomorrow I will post it to the blog and the chatroom. Have a good night.