Why Shark Repellant Is Still Necessary

I really don’t have a lot of conviction right here. Yes, the markets are putting
in an effort to repair all the damage that was done but I am just not too sure
there will be a lot of upside in the near-term. Here is my take.

Volume has been light on this rally. The main excuse is that investors are
waiting for a war. OK…maybe. I think it has to do more with the wearing-down
effect of a brutal bear market. I just can’t see a market rallying too far
without conviction.

There is still a lack of leading stocks. As I went through the whole market this
weekend, I found a whopping 75 stocks that had great technicals. That number
excludes stocks under $10. There is a decent number of under-$10 stocks that are
acting well. The market will definitely need more leadership to insure a good
move to the upside.

Sentiment is getting more bearish. This is good news in the short-term. The
market needs the wrong-way crowd to stay as bearish as possible. While the
numbers are not yet at extremes where you get big rallies, they have been going
the right way.

So…all in all, better action but...I STILL DON’T SEE
ENOUGH HAPPENING TO GET ME EXCITED. Not much has changed for me. I
believe that this market is going to continue to whipsaw back and forth. I
believe your best move is to play it lightly. Lastly, while I talked earlier
about resistance levels, don’t forget support. This trading range can also
resolve itself to the downside if it wanted to. Use a Dow 7720, S&P 818.