Tuesday, March 9, 2010

Are We Extended? Maybe, But That Doesn't Mean We Can't Go Higher....

The dip-buyers pounced on a little gap down this morning and were buying relentlessly until about 2 p.m. EST, when a little profit-taking finally hit. That pushed the Naz back into the red momentarily, but once again the dip-buyers showed up, and we managed a close in the middle in the intraday range. Market players are so used to this market that never seems to dip that our little afternoon swoon actually felt more significant than it really was. Overall, it was still a victory for the bulls. Breadth was positive, and there wasn't any real notable weakness. Retailers, oil and semiconductors lagged, but financials were perky on rumors about possible restrictions on shorts. 

The technicians are out there saying it just isn't possible to be wildly bullish when we "need" consolidation so badly, but the old adage about not fighting the trend can't be overlooked. We really need a better shakeout to set up some better opportunities, but this market seems to be in no hurry to make things easier for anyone......

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