Wednesday, November 24, 2010

Weaker Open than Expected

Although we are gapping up, it is quite small and well off the overnight highs set during the Asian hours.  There is underlying weakness in Europe and it is weighing down this market.  The market badly needs a flush out to clean out the weak hands.  Everyone points to positive seasonality, one wonders if that is breeding more complacency.  What everyone knows in the market isn't really worth knowing.  Still believe we will see lower prices next week. 


Petsamo said...

Durable goods orders are a bad surprise. Good jobless are probably due to seasonable hiring and/or shortened holiday week?

Market Owl said...

You are putting too much focus on the economic data. It only matters if you are gaming the data before the release and either buy or sell ahead of it, or buy or sell right after.

It has no lasting meaning in the market. It is one of the most misunderstood aspects of trading stocks.