Still on the sidelines
July 13th, 2010
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The market has bounced off from the lows, unfortunately on disappointing volume. Added to that, the breakouts are lacking in this market. SPRT is the only chart that we like. But, as the S&P is still below the 50 day(around 1100) and the 200 day (1110), the trend is firmly to the downside. This kind of environment is not good for the breakouts. That’s the reason why we are not seeing any leadership here. There is nothing wrong to be in cash when there is doubt. We will continue to watch this market.