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01-25-09: Market Recap, What a Dicey Day

|Includes: Ciena Corporation (CIEN), STX, WDC

Monday, January 25, 2010

01-25-09: Market Recap, What a Dicey Day
Tale of two tapes: The opening gap up, all sectors gap up @ open above the close from Friday...and the close, all sectors finished lower than the opening gap. If we look in the dictionary, this is defined as a dead cat bounce.

Materials and energy led, then financials, industrials and then tech/telecom. The only sector likely to hold these gains and advance tomorrow absent some great overnight news is tech,  up in afterhours.

Three huge down days, one weak dead cat bounce with the indexes up less than a half percent. We now go sideways or we're in trouble with a hard down. It may depend on the one man bear market maker, N'Obama...and how aggressive he is in touting all his absurd "saved " jobs and the alleged "recovery" his policies have fostered, as per the weekend news programs by his minions.

Not much to say: we play defense, 60% cash, keeping a few techs (like CIEN, SNDK, STX) and looking to build longs, but not willing to ride them down more than 10 cents.  We'll sit in cash until the money managers are done jousting with the anointed one and decide its time to buy.

Disclosure: Long all mentioned.