More Market Confusion - More Confusion For Me

stock market crashFog continues to dawn on the market as we yet again experienced another up and down day of trading, showing that investors have not quite made up their mind of what they want to do. It also shows that day traders are still very strongly running the show as it seems institutions are still sitting on the sidelines. I was surprised to see a lower volume today, compared to the last few recent trading days.

The market spent most of the morning trading in the green as there were numerous talks of several very large mergers, including the Genentech buyout. Also, banks received a lot of love with some help from Mr. Buffett expressing some kind words about Wells Fargo in his interview this morning with CNBC. He also said that banks were in pretty good shape and that they should be able to "earn" their way out of this, but that banks need to get back to banking. Buffett went on to say that indeed our economy has "fallen off a cliff", but that there is a lot of hope for us in the future. I love how the market reacts more from encouraging words from a corporate executive than our own President and Secretary of Treasury. Shows how much confidence we have in them. The market did rather well during the Buffett interview, only to fall when Obama showed his face to talk about the approval of stem cell research. Thanks Obama.

It was nice to see a good bounce from oil and financials, considering that 80% of my long positions are of the two. We also saw more love for the US dollar, which weathered well for my UUP shares. Gold took another hit, edging its way down near that $900 level, which makes me very tempted to pick up some shares. Another strong down day for gold, and I am most likely getting in.

Other than that, I can't find much to extract from today's trading. This market is wanting to rally, you can see it. It just lacks a spark to do so and until then, unfortunately we may see these flat trading days where short traders dominate the close. If indeed a spark does come (don't ask me what that will be, I think Buffett tried today), the rally could take off pretty aggressively. However, we are running out of time. Sooner or later, more bad news is going to hit the market. That is what happens when you are in a recession/depression. So each day that goes by without bulls pushing this market up, is one more day closer to a big sell off day. I would have think if bulls don't make their move this week, this market may be toast. This would not be good for me as I am not prepared full for the market to crash. Well, at least I wouldn't be losing my shirt either.

So again, I wait patiently for the market to make a direct move. Although some may argue that having us close another day in the red is showing more signs of the crash, there were enough positive movement to unable me to come to a clear conclusion. The rally for financials was big, considering that it has been financials that has been the downward driving force for the market in recent weeks. If financials can continue to gain ground and investor confidence, this could be what sparks the rally.

NASDAQ has been recently showing weakness in trading after its rather strong trading month in February. I think the NASDAQ could be the next to get hit hard. For many people's portfolio, some of the only stocks that still have value are their tech stocks. If they need to liquidate their stocks for cash, they will most likely to sell their GOOG rather than their BAC, considering GOOG is still in the high 200's. QID is one that I am most definitely considering to get in as well, when I find it a good time to load up heavily on shorts again. It had a nice 4.21% bounce today. So we'll see how that goes. QID's Market Club report score is a +70. Looking very strong and I only see it getting stronger (get your own symbol analyzed for free, all you need is a name and email, Click Here).

Tomorrow should be interesting to see what the market does. For those that emailed me about Carbon Sciences and Origin Oil, you should have received a response from me giving you more information. If you did not, please email me again and I will get you the information. Also, my Lending Club continues to yield very strong returns. It can also be a great source for those of you needing to consolidate your debt and not get caught with the very large credit card interest rates. You can get a loan as low as 7.5% to pay off that 15% and higher debt. Below is a recent news video that CBS featured on the company Lending Club and their successes.




Have a great night everyone, Happy Trading and we'll see you tomorrow.

PS, I apologize for the late post tonight. I spent the evening with my wife for her birthday and not even the market crashing keeps me away from that. See you tomorrow.

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