Thursday, June 07, 2012
Stocks looking Tired
Yesterday the Markets looked like a rocket launched to the moon. Like I mentioned in my previous post, sufficient thrust was lacking behind the propulsion. Today, the rocket seem to be stalling. SPY hit resistance and reversed course. The stocks in my watch list all appear to be extended or very tired. I am more inclined toward a downward follow through than a continuation move upwards. But, the market action dictates the next course of action. If you are baffled by the market action, the best course is to sit in cash. Learn to accept the risk and take a loss. Anything can happen in the Market. Markets are driven by news and rumors day to day now. This is the kind of environment where experienced and nimble traders thrive while the novices or not so nimble taken to the cleaners.