Those traders who expected the market to automatically give back a large chunk of last week’s gains via a swift move lower have to be frustrated with the action this morning. As I noted last Friday in multiple posts, an overbought market that stays overbought and fights off a correction hard is bullish. While the senior indices are basically hugging the flatline, the energy/materials complex is acting well, with the financials and transportation stocks consolidating.
As the morning progresses, I am looking for stocks that continue to set up behind those issues that are already extended and consolidating. If last weeks’ move higher truly has staying power, then it follows that more and more stocks should continue to work. A few names that meet that criteria this morning: $AIRM $BPI $SAPE $SOLR $SREV $STNR.
lol. i just posted this on another blog..
“of all the blogs/newsletters i read 95% of them are expecting some sort of pullback this week and say it will be a great place to buy the dip which leads me to believe we will either spike a little bit higher first or just trade sideways “
yep