Market Continues To Trade in Tight Range

The S&P 500 has closed between 1445 and 1450 for six straight days. That is pretty tight consolidation, and increases the likelihood that whichever direction to which the market breaks out could have some legs.

This morning's headline in the USA Today says, "Stocks may be overdue for a pullback". When the media is already looking for a pullback, I am not too worried. I would be more concerned if the headline read something like, 'stocks look to continue higher'.

CWTR warned about lower revenues again, with the CEO saying that customers are likely buying more electronics than clothing. Kind of a strange comment to make, but I guess when you're not doing well, any excuse sounds better than the truth.

In M&A news, Fortress Investments is set to go public, making the first hedge fund company to register an IPO. Goldman Sachs (GS) is also making news that it will raise around $19 billion for another private equity fund. Guess that means more buyouts are on the way.

In other news and notes:

• Asian markets rise overnight
• Insider selling reported at Merrill Lynch
• PNRA misses by a penny; guides Q1 below consensus
• Hasbro beats by $0.07, beats on revs
• EMI mulls lifting online-music restrictions
• Landstar System initiated with a Buy at Keybanc
• MasterCard beats by $0.15
• American Science & Engineering misses by $0.18
• Circuit City target raised to $30 at CIBC
• Broadcom target raised to $40 at Needham
• Poole says development of subprime mortgage market 'healthy'

long GS