This manic, depressive market is making me, well, depressed. There is really nothing you can do as a trader but to sit back and watch what happens, until such time as Miss Market makes up her minds as to what she wants to do.
Our momentum indicators are being whipsawed, although they are staying slightly to the positive side. Should we ever get a rallying with a confirming rally we will quickly move into good shape with our indicators. But you can't trade on that.
I suspect what may be happening is that there is a lot of cashing in on the commodities to take profits, but also to prepare for a rotation to other sectors once we start getting some first quarter earnings reports. I am also of the belief that a "bottom" is in for now and that there will being growing confidence in the Feds actions to step in strongly in the credit crisis. That coupled with the interest rate cuts will eventually set the stage for a nice rally.
We might be stuck in this rut for a couple more weeks before earnings reports begin. Thats okay, I am going to watch some basketball.
Go Bruins!
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