A second week of modest, upward momentum scares the bears into covering short positions.
This dull and leadership lacking rally is suspect. No real evidence of institutional buying en masse. Volume is generally lighter. It’s not enough to tilt the scale from Sell Bias to Neutral. But that could happen with any solid, institutional sponsored up day.
This is the kind of upward drift that suckers dumb money into thinking the selling is over. If the selling is over, we’ll have plenty of time to setup up properly in high quality stocks with sound bases. For now, wait and watch.
Only stock matching our top scan this week was TAL Education Group (XRS), a education and training services company out of China.
Still lingering from the scan a few weeks ago is Walker & Dunlop, Inc. (WD), a mortgage investment company, that has inched higher into a new base with a proper handle – still looking good.