Weak Closes And Low Volume Dominated The Market This Week

November 1, 2008

The stock market had a great week last week but the problem that kept creeping up as each day went on was lower and lower volume. This is not good no matter when you see it in an uptrend, unless heavier accumulation then follows. However, this particular rally seemed to be very weak. And if you go over the Nasdaq each day as the market rallied it becomes clear that institutional investors were not supporting stocks as they moved higher.

Therefore, I must continue to advise everyone to be VERY careful right now as there is a LOT of uncertainty out there and the one thing the markets do not like are uncertainty. So if this wild action continues for a while, I would continue to exercise caution.

The only thing that will change my mind is if I get more FULL short covering moves that get me out of my last 5%-20% of holdings in some shorts and I get a rally that has more than a few stocks moving higher. Right now, it is too messy, besides Medical stocks. And just because medical stocks are moving up does not mean that makes them a safe bet. So be careful about chasing momentum in a weak tape.

I still can not believe that I do not feel up to speed yet but I am hoping by Election Day I am feeling much better. I really apologize for the sickness. It seems I get sick, when the market gets ugly. LOL. Let’s pray for better days. I will be back in action I hope tomorrow. If not, you Platinum members know I show up all the time in the chat room. However, recently, I have been avoiding the market hours. Ugly, wild action.

Have a great week and, like I said, let’s pray for better days with better stocks in better market uptrends. It might have been a good week. But one week does not a bull market start make. Aloha!

Here is the most recent You-Tube video. A second video will be provided to Gold and Platinum members before Monday. Thank you for letting me take some time off. THANK YOU ALL!!