Cooling down...

The action may get tiresome somewhat.   The action we are referring to is the weakness in the afternoon and it's been happening for a few days in a row now.   Perhaps, one cure for this is not to have a strong opening.   In honesty, we haven't had any super strong opening in a while either.   This leads us to believe that the cooling period may be coming for this market.    Yes, market temperature and actual weather temperature tend to go in the opposite direction.    There's just seems more to do outside when the weather is good so less attention paid to the market.    At this point, we are definitely not calling a timeout but we'll see what happens after the Memorial holiday.     The game with DJIM here, with regard to summer time, is to trade small and trade selective and trade more sector oriented stocks.   One thing is for certain, the slower the market, the easier it is to be on top of things.  As far as today, we were in preventive defense mode as per our alert at 1:15pm. What ensued unfortunately exaggerated itself be days close in the form of a 3rd straight late day sell off.  This one more extreme.  Fortunately, we were prepared thinking the market would find the 2600 on the NASD brain cramp level, a psyche level that could be used for an excuse to pullback.  A 3rd attempt at the 2600 hurdle on the day failed soon after and this coincided to close to that 2pm tide time when the market seems to switch gears more often than not.   Simply, the characteristic of the market is to show its colors just after 2pm and we weren't waiting to preserve some gains in the biggest movers lately here.   You can blame Greenspan comments after2 pm, but if you look at the intraday 5min NASD 2595 day support was broken and selling picked up before 2pm and that was enough for some.   Mr. G said nothing new today, except maybe you can say it came from a horses mouth.  The market sentiment will not change because of his comments, likely it will come to its senses and snap back...how `bout tomorrow!.   What it did is maybe give the market an excuse to pause and reflect a bit.  Not a bad time with the long weekend coming up.  So instead of taking some profits later in the week before a holiday, we preserved today.  Nothing was beat up too badly, just remember to give the 9ema support a look on your holds. 

Now with 2 days of trading left, we hope the big boys leave their desks early and let us retailers play while we're left home alone.  By this we mean.. we will look for new EPS-news-story stocks that might invite fast retail money for a trading possibility with spreads that are wider than usual allowing the stock to be pushed higher.  If nothing great comes along we'll likely continue to flip CYPB intraday as this story probably won't go away so quickly. For a stock up 100% at the bell, it traded in a very narrow range during the day.  90% institution owned and a short interest of around 15% before today should give this plenty of volatility and trade possibilities intraday in days to come.