Russian Roulette and the Stock Market

The stock market continues to dole out pain to most traders. Just when it seemed the market was cracking, the Dow Jones sprints ahead, leaving a trail of anxiety in its wake. There's nothing the market enjoys more than to deposit traders into the gutter before peeling off without them.

Our original targets of NASDAQ 2185-2190 are still in play; however the risk/reward ratio to us seems dubious. Therefore, we are still content in not trying to game what seems to be the tail end of the latest move.

The market continues to exhibit signs of trouble with the Dow Jones outperforming the NASDAQ noticeably. Furthermore, the Dow Transports are weak which is not even confirming the move in the Dow. It should be noted that Yellow Roadways (YELL) is hindering the Transports. Our key tell stocks for today are not impressing us with levity. Market breadth is okay, but nothing to write home about for the NASDAQ.

The biggest thing going for the Bulls is the extremely high skepticism that exists for this rally. The market may continue to frustrate the underinvested Bulls for a little while longer, but make no mistake about it, this little game of Russian Roulette is getting dangerous.

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