Mr. Market Still Has a Case of the Moody Blues - 06/10/11

A conservative and risk-averse strategy is a reasonable approach for most investors and traders.

Breath deep
The gathering gloom
Watch lights fade
From every room
Bedsitter people
Look back and lament
Another day's useless
Energy spent.

-- The Moody Blues, "Nights in White Satin" (classic version)

With volume grinding ever lower and little in the way of significant economic data, Mr. Market looks like he is going to limp into the end of the week.

I remain of the view that (as expressed in Wednesday's opener) stocks should be accumulated slowly as (or if) the S&P 500 moves closer toward the 1250 level.

As indicated by The Divine Ms. M., sentiment is moving toward a negative extreme, and we are also moving toward a good oversold.

These are Strange Times (Moody Blues album released in 1999) and The Present (album released in 1983) remains confusing. Many talking heads are saying "Go Now" (No. 1 on the Billboard chart in 1964), but I say it's all a Question of Balance (album released in 1970). I also recognize, however, that, for most, "Watching and Waiting" (song released in 1969) is perfectly acceptable over the near term.

With so much indecision (and open economic questions) in the marketplace, a still-conservative and risk-averse strategy is a reasonable approach for most investors and traders -- as just what the investment truth is, "We can't say anymore."

Nights in white satin
Never reaching the end
Letters I've written
Never meaning to send
Beauty I'd always missed
With these eyes before
Just what the truth is
I can't say anymore.

-- The Moody Blues, "Nights in White Satin" (newer version)