Premarket 8-18-05 Same 'ol same 'ol.

Good Morning.

Overseas markets were mostly negative and US futures have been under pressure all morning. Initial claims came in ahead of expectations at 316k versus 310k consensus. Key tells today might be Google (symbol: GOOG) which is having a secondary offering. This is not necessarily bad news but stocks always feel initial pressure when a secondary is announced. There is a significant amount of buying interest in GOOG to most likely make this an opportunity to get long if you are not already.

The stock market is in a state of limbo where it has recent technical damage and has confirmed a downtrend several times. It's hard to see anything more than rally's of the Dead-Cat bounce variety materializing. Headwinds are abundant such as recent inflation concerns, trouble in retail land, looming preannouncement season, summer doldrums, September around the corner (notoriously the worst month for stocks), and an overall vacuum of catalysts to ignite the Bulls.

We are comfortable with our very large cash position and plan to use it to occasionally play the oversold bounce as long as we use tight stops.

Don't force your trades.

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