Another round of distribution Thursday keeps our pullback prediction alive.
It’s this kind of heavy selling that hints institutions are backing off from the long side, taking profits and regrouping.
It could be a mild sell off, less than 5%, or something heavier. Meanwhile, the evidence isn’t strong enough to get us to back off from our Buyer’s Edge bias just yet.
Keep an eye on leading sectors for clues of where they’ll take the market next: Semiconductors, Financials, Retail and Transportation…
The market rarely makes it easy to put on a short trade. Through several sessions of mostly sideways action traders finally got some downside action over the past week. But Wednesday’s strong upside day now has the Dow and Transportation indexes poised for new highs.
Market wisdom has kept our Buyer’s Edge bias intact. We still see plenty of room for a pullback/correction to take place in the next week or two. Though we just may see some new highs pegged very soon.
The bear has packed a nice punch for the bull with four days of clear and heavy selling in the past week.
Look for the major indexes to test their 50-day moving averages.
No need to shift our bias from Buyer’s Edge just yet.
That’s two days of heavy, institutional grade selling. We now need to monitor the damage to discern between potential correction or a more mild pullback.
More sideways action on the major indexes tests the resolve of traders long and short.
We’re still expecting a pullback. But not enough to change our dominant Buyer’s Edge bias.
The little Bear exists withing the bigger Bull. Got that?
More distribution for the Naz as we continue to wait for a pullback/correction.
Lack of volatility leads to heightened volatility.
Longs still intact. Profits hit. Riding new short positions.
No time to get cute with over analysis.
The Nasdaq’s gap up on the open may very well be an exclamation point ending a leg up. Small gaps like this get filled. Question is when.
We’re suspicious of any rallies at this point.
As weak as the Bull has become in the last week, the bear is equally unable to build momentum. The result has been a tight range.
We anticipate there was a considerable amount of short covering in Tuesday’s session, but we’ll mark it an accumulation day anyway. Best to keep your powder dry for now.
The S&P 500 erased last week’s gains with its 1.15% drop Monday. Lack of volume makes it seem like a wimpy punch for the Bear, who was bound to get one in on the Bull sooner or later.
We sit back and watch how our beloved growth stocks hold up in a pullback. Any heavy selling would indicate institutions are bailing, something that could cause us to shift our bias down from Buy.
The market was energized Friday with encouraging employment news and the Dow 30 regaining ground not seen since 2007.
The long bull run has us looking for prices to retreat some, though as mentioned yesterday, there’s no reason to shift our bias down from Buy.
And despite the title of this blog, we’re not Steve Winwood fans.