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January 19, 2007

Afternoon Laze

Folks, I do not have much to offer on today's (lack of) action. The bears failed to follow thru on yesterday's momentum, but let's not be too hard on them. Sell-offs like yesterday's tech bashing are needy of consolidation, and today was an options expiration day, which of late have been very tame and biased to the upside. If yesterday's swoon is to truly have any bite, we should see more volatility on the table next week.

As for other markets, I found it quite humorous to watch oil bounce 3% as financial media filled their headlines with chatter about how low oil can go. The possibility of a near-term bounce in crude price has been discussed here, and the bounce may be underway. Next week may offer swing traders a chance to pluck some profits out of that sector.

My plan for the weekend is to get some solid rest and clear my mind of distractions. I believe the painful, yet elusive sell-off incessantly discussed in this blog may be near if recent action is any clue. It will be important to have a sharp and nimble mind to trade the volatility that comes with such an environment.

Disclosure: None


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