5/18/06

ATR - End of the Day Comments

The market was holding well and actually looked as if a higher move may occur when yet another fed comment hit the press that a hike of 50 basis points or even a cut may be in the cards. Talk like this does not inspire confidence in an already shaky market, which sent bottom fishers to the sidelines and the selling began. The averages closed at their lows on the day and breadth quickly reversed from being positive to almost 2 1 negative.

There is no question a market environment such as the one we are in is very challenging and each and every day continues to wear participants down. The grind becomes monotonous and throwing in the towel looks more and more appealing each day we see the red bars and losses mounting up. After the selling we saw today, this is precisely what is happening and while it almost seems like a joke at this point, is exactly what is needed to set the stage for a relief bounce.

Dell is out after the close announcing decent numbers, which has the stock trading higher in addition to Advanced Micro (NYSE : AMD) after Dell announced using the company's chips in their high end server business. While these moves are very hard to trust and we almost hesitate to mention them, they could potentially spark some buying in the beaten up tech market.

We are quite sure this action is starting to get to everyone, as it is starting to get to us. Take a break this evening and keep everything in perspective. It isn't your spouse, child or dogs fault that the market is poor and while we don't know when, we are quite sure that we will soon see better days. Hang in there and well see you tomorrow.

Have a good evening.

RevShark