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No Love from the S&P


Congestion at the lows feels like November all over again.


Have you ever met someone, thought you really connected - and then never heard from them again?

That's what Tuesday's market action felt like: A lot of positive action (even if it wasn't representative of a strong connection). And then what did we get? No follow-through!

Take a look:

The health-care sector, previously one of the top performing sectors on the S&P 500, crumbled over the last 2 days.

Click to enlarge

The financials are hitting exhaustion levels after we got what we asked for - a 40% rally in 5 days.

Click to enlarge

What's going to be the wind beneath the S&P 500's wings?

Meanwhile, the market action reminds me of this stray song I came across on my iPod yesterday:

"I did cause a commotion
I can't help but make a scene...
Tell you what it's gonna be
you better step up your game
before you can step with me..."

Click to enlarge

I haven't been seeing any signs of the game being stepped up. Instead, this congestion at the lows brings back memories of November.

Another time, same place, I probably would have been short. But with the rules of the game changing while the game is still in play (thanks, government!) all I want to do right now is wait on the sidelines and wait for positive signs before taking any action.

On a personal note, however, I think I can afford to take more risk with my iPod - and play it in the shuffle mode more often.

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No positions in stocks mentioned.

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