Break In

I thought I'd briefly comment on the market action yesterday, which was not a good day for stocks.  Basically we've given back about 50% of the rally from earlier in the week.  That is not all that surprising as those gains came so quickly that there were always going to be people that bought and sold some of those short-term profits.  It looks like we've been getting a retest of the recent gains and it will be important to see if those hold.

Markets are looking to be up on the open about a third to a half of a percent.  It would be positive if stocks could hold on to or even advance those gains today, especially since it's Friday.  

None of this volatility should be surprising given what we've seen in the current environment.  It's important to note that while the average index is down between 5-8% there are many individual stocks that are down considerably more than that.  We are also getting oversold enough by our work that there's a higher probability of a more sustainable advance in the coming weeks.

Back early next week.