November 20, 2006 Stock Market Recap

I have absolutely nothing new to say about this market. It's still overbought and drifting. It seems that we're at a juncture where nobody wants to sell (we're approaching year-end for many funds) and nobody's motivated to buy. Luckily I have no problem remembering that cash is a position (and often a very good position) and I'll likely stay in cash for the rest of the week. I expect volume to dry up as the week progresses and I want no part of that chop. I'd much rather play the short side with the market so extended but the opportunities to go short just aren't there yet. So I'll keep my powder dry until something changes.