Tuesday, June 07, 2005

Sputtering Out of Gas

The chart above is the past ten days (on an intraday basis) of the Dow Jones Industrial Average. As you can see, the trend is that there is no trend. Up. Down. Up. Down. And so forth.

Today was a perfect example. The markets shot higher, stalled, and fell right back down to the flatline again (more or less - some lost, some tacked on a bit). But the market's ability to convincingly rally is, for the moment, simply not there.

There's a new stock I like - KYPH - with a nice saucer-in-the-making. The volume on this stock is handsome. I remain by-and-large bearish, with a particular bearishness on the $RUT (which you can trade via index options, the IWM, or options on the IWM itself).

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