Torn Between 2 Forces...

Market is torn between 2 equally strong forces today, resulting in the Dow closing almost unchanged. To the topside, the energy sector was the best performer today as it led the way up on new record oil. To the downside, financials led the way down as investors fail to see any further action taken to remedy the subprime crisis. Investors have not been this uncertain about the capital market and the economy in general since the huge slump of 2001. Would the 2001 bear market return? Shouldn't the internet and better investment education create a more efficient market? Certainly, the market has become a lot more efficient over the past 10 years. In fact, there are pockets of specific markets around the world that are already reporting weak form efficiency. Which is also why it is now so difficult to make the kind of explosive profits our forebearers used to make decades ago. But has it reached strong form efficiency? Definitely not. Which means that the chances of catastrophic, sudden ditches are a lot lower than decades ago but it may still happen on a lower magnitude. This is going to be a heavyweight week with the ISM index and Jobs report all coming up (see economic calendar). With the market already in all out bear mode, it is going to take a lot more than a couple of strong numbers to turn things around. In fact, many of the bears are going to sell on every positive number, continuing the bear trend no matter what. Even if the market would to pick up a little, it is just going to be a small dead cat bounce meant for the bears to short at better prices.