I was down a bit today; mostly because I did not sell my August 4 C Calls when I had the chance....Why am I being so stupid in this regard? Will I wise up this week? Next?
Anyway, although we ended with some red on the screens today, the selling was quite mild. I keep hearing how we are due for a pullback but we aren't seeing much of one yet. Given the move this market has made, it doesn't take any brilliant market analysis to say we need a rest. Even the bulls want a pullback at this point so they can add some longs at better prices.
Even with the red in the indices there continues to be some aggressive trading. China-related names were particularly active today. Also health care and biotechnology names performed quite well. Oil bounced but gold, steel, homebuilders and retailers pulled back.
I'd like to offer some new insight here but the conditions remain the same. We have had a big powerful run that has made us (seemingly) extended and in need of a rest, but too many people want to buy weakness and that gives us very strong support.
The market is not going to suddenly fall apart. It will need to weaken over a period of time and then maybe all those dip buyers will stop being so anxious to jump in.
For now everyone is talking about pullbacks but no one is actually selling. The bulls still rule....
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