Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Not feeling so Homey on the range


Doesn't this market feel awful? War with Iraq seems imminent, the profit picture is mixed and a number of technical levels have been broken. This sounds like an environment where buying would seem insane. Or would it?

Technical levels haven't mattered for the last two months (just look at the number of headfakes over that period), a military solution to Iraq shouldn't come as a surprise, and the mixed earnings reports and guidance has been this way for the last two quarters.

The bottom line is that the tape feels as bad right now as it did great two weeks ago when it was "obviously" breaking out. The toughest aspect of a trading range environment is to have the courage of conviction when it looks like a break down is imminent and discipline of conviction when it looks like it is off to the races to the upside.

There are so many issues facing the tape that any big bets don't make much sense, but if the market is in a trading range, this isn't the point to be an aggressive seller. Tough call - kinda like the one looking for a move back to the lower end of the trading range a couple weeks ago when the performance chasers were taking stocks higher.
To understand discipline, go back and read Toddo's journal from yesterday!
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos