The session leading into Memorial Day Weekend 2006 will be one easily forgotten. Trading activity was lethargic and no useful information could be discerned from the action. Even Google managed less than a one dollar move, exemplifying the character of the day.
Traders now have a three-day weekend to ponder their next moves. I continue to believe we're in for a pernicious rally pernicious only in the sense that it will fool bulls and unwind to the downside faster than even some bears might believe. Barring any disturbing developments over the weekend, I'll have my eyes open for this rally early next week. I do foster a modicum of doubt about this scenario only due to the widespread expectation for such a rally. Perhaps the market can fool the majority here but going straight down. Either way, Tuesday's action will be loaded with much more useful information than today.
Disclosure: Long GOOG Puts