Slippery Footing; Stocks Slide with Volume Easing

Source: http://www.market-speculator.com/2008/12/05/slippery-footing-stocks-slide-with-volume-easing/
Posted on Friday, December 5th, 2008 | In Market Commentary

Contributed by: Market Speculator (http://market-speculator.com) -

Thursday’s action puts doubt in whether or not this market will enjoy a Christmas Rally.

The Big 3, now ‘lil 3 of the auto industry had their executives in Washington begging for a bailout loan. With the hope of a bailout diminshing as the day wore on the focus shifted to Friday’s job report that has many looking for 334,000 jobs lost with 100,000 manufacturing jobs making up a large chunk. It didn’t take too long for stocks to lose footing and close down near the lows, but off the lows of the day. Volitility remains and we have yet to see this market calm down and try to put in a meaningful bottom. Until we can see daily swings tighten up and volitility leave the market the wild swings will continue.

Sitting in 100% cash isn’t very for nor is it sexy, but boy does it feel good to step away from the wild swings of the market. I fully expect for this to continue until the daily swings of the market wind down. In the past, I have mentioned New Highs versus New Lows and the need to see this ratio be favorable to New Highs. This ratio continues to be dismal.

I continue to be in cash and will enjoy every minute of it.

Enjoy

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About Market Speculator (http://market-speculator.com)
Market Speculator began his market career shortly before 9/11/01. The methodology he uses comes from the greatest stock market traders of all time; Livermore, Darvas, O’Neil, Dryfus, etc. Decision making is based on price and volume while stock screening is done by growth in fundamentals. Much like William O’Neil’s CAN SLIM approach to investing Market Speculator focuses on a narrow amount of stocks and lives by cutting his losses early.