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The market action today reminds me of how to best grill ribs—low and slow. While there are occasional bursts of flames, in the form of some small-cap China, biotech, or rare earth metals play ripping higher, when taken as a whole the market is rather sluggish today. With some key earnings reports coming up early this week, I would imagine that is what is causing many traders to look for mostly intraday scalps.
Once again, I see many bears are out boldly declaring this the top. And, once again, I am reticent to try to play “Truth or Dare” with Mr. Market, in the face of a potent uptrend that we have seen since September. One interesting thing to note today is that the financials are the top performers, after getting decimated last week. While today could easily be a dead cat bounce from the carnage, the updated $XLF chart, the ETF for the financials, indicates that the key flattening-out 50 day moving average is holding well thus far. If the bulls expect to breakout of the financials’ multi-month trading range, I believe making an important higher low here (within the context of the past few months) is crucial.
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RAGINCAJUN & chessNwine coming soon to The PPT, via 12631.
[youtube:http://www.youtube.com/watch?v=pFoJSmSDtL4 450 300]r
Funny sort of day. I guess it’s OK as long as I’m not the one getting barbecued.
Indeud.