Votes Go To Bear

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…

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Screw The Shorts

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. 

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Bull Rolls Over

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.

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