an tSionna 01.27.09: More of the Same

I haven't posted a market picture in about two weeks. As you can see we have basically continued in the trading range established last fall, albeit with a negative bias since the first of the year. Stocks are off about 6% so far in 2009 but they are still about 12% off of the lows established in October. Lately the market looks like it has established some short term support and is working off an over sold condition. This is one of the factors that prompted me to revisit some of my trading longs over the past 10 days. {See Post of 01.16.09}

One other piece of what I would consider to be somewhat positive news is that the market has recently stabilized even though bank stocks have continued to be weak. Since banks led us down I think this divergence could be a positive force over time. Incredibly banks now represent only about 3% of the S&P 500.

*Long SPY and related ETF's in client accounts.