It has been a while since we have had a weak finish, but the buyers finally ran out of steam and gave back some of the day's gains. Even so, it was still a mostly positive day. Breadth was solid at close to 2 to 1 positive, and the "weak dollar" plays, particularly gold and oil, led to the upside. Lately we haven't been hurt much by a stronger dollar, but when it is weak, it is still a positive. Small-caps have been the leaders of this market for some reason that escapes me, but it was the strength in some of the bigger caps like AMZN and GOOG that has driven the broader market the last two days.
Small-cap indices are near highs while the senior indices still face technical overhead on the underside of the January highs. Given how easily the small-caps have overcome the same levels, I'm not sure how significant that overhead is. The market is back in a very familiar place with a straight-up move and some overbought conditions but few signs of weakness. It is quite easy to make good arguments for why we should pull back, but the market doesn't much care how smart the bears are. If we are going to pull back, we are at a point where it seems logical, but that was the case on Friday as well. Just sitting and holding is the approach that works, but for active traders it isn't easy when you have a market in the position that we are in now.....
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment