The Dow Jones Industrials lost 0.69 points on the day, closing at 11,842, the Nasdaq lost 20.35 points and closed at 2385.74. The more broadly based S&P500 index gained a whopping 0.07 points, closing at 1318. Volume was down significantly across the board. This should come as no surprise though as we have come off of some more volatile trading leading into Monday, and we have the two day Fed meeting starting today. Nothing is expected to come of it rate wise, but people will be keying in on how the Fed is looking at the economy and the markets at this time. Technically speaking both the Dow Industrials and the S&P500 Index traded in very narrow ranges, in fact the narrowest ranges of the last 7 trading days or more each. Often times an NR7 occurs before a large trending move in one direction. Often these only last one day, but they can present great opportunities for short term traders. If we happen to get a large gap, up or down, over the next few days in the markets a trend day is more likely. The story of the day yesterday continued to be two fold. First, and most important as far as I'm concerned is the continued meltdown in the financial group. Financial stocks remain over owned and over loved by institutions and continue to drip lower nearly every day. So many people are trying to pick the bottom in this group its becoming as silly as those who thought they could find the bottom in the Internet stocks in 2000. Bottoms are not events, they take place over time. The best thing to do right now as far as I'm concerned is to not be playing chicken with freight trains and wait until a good bottom with proper follow through is put in. Once the ârealâ bottom is in there will be plenty of upside, but I don't see it happening anytime soon, a lot of people, including the âsmart peopleâ at big institutions and hedge funds have yet to puke up their positions, and when the bottom comes they will. Wait for it. The next story was Oil. I follow nearly 200 equity groups each day, and of the top 10 strongest groups yesterday 9 were Engery stocks. Caution should be taken with these right now since there is a large degree of political risk, however when I scanned over 2500 charts last night that majority of the good setups I was finding belonged to this group. That's not something to ignore, so, I will be looking to put small positions on with strict risk control in stocks like FSLR, APA, OIH (Oil Services ETF), MUR, and DRQ. These positions will be taken only in the event of a breakout on above average volume, and will account for around 10 to 12% of my AUM. I will have more to say about Energy later today, most likely this evening. It will be updated on my blogs.