2:20 pm ET: Market action today is rangebound despite the increasingly bearish tone to the internals. It appears as if the Street is waiting to see how Alcoa is going to kick-off earnings season when it reports after the bell. Analysts have lowered their quarterly estimates on the aluminum maker quite a bit. However, should the company beat expectations, even by a little, a rally could be sparked as investors might feel cheered into thinking the economic slowdown may not be as bad as predicted. Of course this is only speculation but what else do we have to go on right now?
Ag-based commodities continue to soar as the prospects of a bumper crop continue to diminish due to adverse weather conditions. The corn etf (NYSEARCA:CORN) is up 5% today alone--that's a huge move for this issue. But is it too late to get into it? Technically, the stock has risen 33% to $48 in just a few weeks and is closing in on its all-time high of $50. Of course, this fund has only been trading for two years so it's possible that it could leave the $50 level in the dust, but why take the chance? The stock has climbed so far so fast that it's not unrealistic to think that a little "irrational exuberance" has been adding some fuel to the rally. In this regard, then, it's not unthinkable that a sharp pullback could be in the offing. Attempting to buy into this right now is the equivalent of trying to catch a rising knife (as opposed to a falling one).