NASDAQ waiting in limbo for guidance
After the semi-nice pop on Monday, NASDAQ is once again in limbo waiting for guidance, with no crystal clear short-term trend. The open question is whether the bearish short-term speculators have the will or decisiveness to attack strongly, and similarly whether the bullish short-term speculators have any will or decisiveness to continue rallying. They both seem to be running out of steam. I mean, the rally on Monday was okay but not great – less than a 1% gain. The real question here is whether either camp of speculators can mount a campaign for days on end, rather than this hit and run mentality we are seeing. But, that's to be expected in a traditional trading range. I suspect that NASDAQ will remain trapped in this trading range until the full brunt of mediocre winter and Q1 results and the whole "sell in May and go away" anxiety are safely behind us, like when the calendar rolls over into June.
Right now, I expect that more short-term speculators are more focused on getting ready for the long holiday weekend than what NASDAAQ might do over the next few days.
Meanwhile, I'll continue to be on the lookout for 10% dips on solid stocks to pick up. This morning it looks like Staples will be the pick. On the dip predicted by pre-market trading it will have a dividend yield of 4%.
-- Jack Krupansky