Securities Research Services

Tuesday, January 29, 2008

Market Drifts

On Monday the market started its holding pattern that is likely to last until the Fed releases meeting minutes tomorrow afternoon.

Prices drifted higher on low volume.

"Drifted" is the key word to pay attention to here. Shorts were not squeezed and smart money was not buying. Sellers were simply on strike for the day; as they are likely to remain today.

One thing is clear. The bottom is not in yet. A trading bottom is not even in. It's best to remain patient here. The market is likely to retest recent lows and perhaps take them out before a true tradable bounce can get started.

Shorting in front of the Fed meeting is going to be tough, so manage your open positions and then wait for the right time before shorting more. A pop higher following the Fed might be the best opportunity for shorting we will get this week.

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