The indices have been trading in a tight range just off the lows all afternoon. With an hour left we'll probably see some whipsaws, but volume will be too thin to inspire much confidence in anything. The bulls probably aren't anxious to do a lot of buying with so much negative focus on the employment report today -- that's likely to get a lot of press this weekend and isn't going to help confidence.
The saving grace today is that volume is low, as you'd expect with the long weekend coming up, but the lack of a typical positive holiday bias is troubling. Also, breadth is terrible and we have broken some support levels with the move today. We aren't in great distress, but this is looking like a failed bounce attempt following the breakdown from June 15 to June 22.
You never want to read too much into light trading around a holiday, but this has been unusually poor action and it creates more overhead resistance in the indices. So if we do attempt to bounce again, the bears and sellers will likely be more active on strength.
I have to head out a bit early to catch a plane so I'm going to miss out on the final-hour action, but it is just going to be a little slot-machine action. Have a great holiday I'll and see you on Monday.
P.S. Will you be there when Cramer makes his next move?
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Rev Shark Blog Thin, Whippy Trading 7/2/2009 12:23 PM EDT This afternoon will be one giant slot machine.
Rev Shark Blog Such a Skittish Market 7/2/2009 8:29 AM EDT The jobs data could whip us around in this thin-volume environment.
Rev Shark Blog Ugly -- Just Ugly 7/2/2009 10:07 AM EDT The action today may prompt bulls to begin their holidays a bit early.
James "Rev Shark" DePorre is the author of Invest Like a Shark: How a Deaf Guy with No Job and Limited Capital made a Fortune Investing in the Stock Market. He is founder and CEO of Shark Asset Management, an investment management firm, and he also operates sharkinvesting.com, an interactive online community that serves and educates active investors. DePorre holds business and law degrees from the University of Michigan, is a member of the Michigan Bar Association and a former tax attorney and CPA. He lives in Anna Maria Island, Fla., with his wife and two children. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Rev Shark appreciates your feedback; click here.
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