Nothing to glean from today's market

We apologize for our lack of posting today. We expect this to happen very infrequently.

The stock market was as exciting today as our lack of posts. The Small Caps and Semiconductors have shown no ability to lift the NASDAQ while the Dow is exhibiting a tiny spark mainly due to out performance in Caterpillar (symbol: CAT), IBM (symbol: IBM), and Coca-Cola (symbol: KO).

Merk (symbol: MRK) just got "beaten with the gavel" in its Vioxx lawsuit. The stock is down about 3% on fear of thousands of similar lawsuits. The Dow took a momentary hit on the MRK news but is starting to stabilize.

Options expiration is keeping the stock market pinned essentially to the flat line. It is difficult to read into anything regarding the stock market's true intentions on a day of expiration. There is nothing however that has taken place today that would give us confidence that the recent downtrend has run its course.

We are comfortable with our defensive position and large cash hoard and intend on going into the weekend in this posture. We have not traded today primarily because of the dearth of good entries in our favorite stocks. Remember, never force trades.

___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (“KTB”) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (“KCAP”) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firm’s principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________

Click Here To E-mail Comments