6/27 – Market Commentary

06/27/2008, at 5:54 pm

Not much to add on the market action from yesterday.  It’s ugly, and the VIX actually closed lower today from yesterday with all of the averages logging higher volume.

The only positive was that the NAZ actually finished near the top of the day’s range on a 50% increase in volume.  This type of action is usually positive, suggesting that perhaps all of the sellers that wanted out, got out, in technology.

However, with the complacency and weakness in the DOW and S&P it would be a surprise if any meaningful reversal could be at hand without a spike in market volatility and some capitulation selling.  This is actually perhaps the worst of circumstances, the market is complacent and may continue meandering lower without much interest, with small technical rallies here and there.

Without any strong conviction or interest there does not exist an environment for entering many, if any, new trades, when the prospect of whipsaw action becomes more likely.  The only thing we can hope for is that the volatility tapers off as the market meanders lower and some good stocks that have been beaten up and oversold present some good LT entries and/or Straddle & Strangle opportunities.

Everyone have a great weekend.

Coach BD 

 

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