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The lack of energy as this trading session has developed is starting to catch up with the bulls, as we are fading a bit at the time of this writing. With zombie banks around the world, not to mention zombie countries overseas struggling with serious sovereign debt issues, there is only so much tread on the tire for buyers of equities to overcome. The potential gap-fill up to yesterday’s open that I highlighted earlier failed to materialize when we fell back underneath both this morning’s lows and yesterday’s intra-session highs. As I write this, I see the market is trying to bounce back, but the individual action in stocks is a bit concerning. When the Nasdaq lags the major indices, as is the case today, it is tough to get too excited about risk appetite.
I still have a few longs on, but am back in fairly heavy cash above 80%. Although the bulls were able to prevent another major dive lower today, and have also held the line at some key reference points, I wanted to see some real energetic buying at these levels. Instead, there is a general malaise over the markets and global zombies which, for all of the talk about the economy and the markets not being one in the same, is apropos.
