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Traders See Days Of Wide Range Ahead

As we drift lower midday, there is good news and bad news.

The bad news:

1) we are entering a period of poor economic data, even poorer than the previous months, as evidenced by the retail sales data today;

2) traders believe that the most likely course of action the next few months is a trading range, with days of high volatility and large price swings followed by days of relatively little activity; we will test our Friday lows several times.

The good news:

--many stock prices have been cut in half in the last 5 months, so stocks are already pricing in a relatively large economic slowdown.

In fact, even today many big names are sitting at 52-week lows: retailers like JC Penneyand Nordstrom, commodity stocks like US Steel, industrials like Eaton, and some techs like Texas Instruments.

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New from CNBC.com:

- The Dow 30 at a Glance

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Questions? Comments? tradertalk@cnbc.com

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  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

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