The Insightful Trader

Good Riddance February

by on Mar.02, 2009, under Market Commentary

What a month. Febuary, which started with a small promising bounce, turned into a disaster month for the market. We’ve now had 6 straight months that the market has been down with 8 out the past ten months being negative. Be sure to notice the volume level on the charts below. On top of that we start out the month of March with numerous economic reports which may not help the bullish cause. We have both the ISM index and services report Monday, Tuesday, we have pending home sales which could continue to remain ugly, Wednesday the Fed Beige Book comes out, Thursday we have January factoy orders and last but not least Friday we have N0n-farm payrolls. If expectations are in line, than we will have over one million less jobs than we had just 2 months ago. It will be an interesting week to say the least. Our technical indicators are oversold, but nothing says they can’t become more so. At some point I still feel we’ll have a bounce, but I’m still waiting for the market to tell us when and not venturing a bottom feeding guess. If you’re short then trailing your stops is probably your most prudent action.



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