As we head into midday, the senior indices are still sharply in the red, while bounce attempts have been tepid. However, given how many underlying glaring divergences there are today, including copper holding up, the decent action in many high momentum Nasdaq names, and the continued bullish RSI readings in many key areas, I find today’s overall action a bit bizarre. If it continues to stay “bizarre,” then whatever it is, it simply is, and I will be forced to stop out of my longs and reevaluate my entire thesis. I suspect this action might be mindgames between Wall St and D.C. over the debt ceiling issue, with the major averages sharply lower coupled with the continued divergences. That said, I will not make a suicide pact with any stock market thesis, ever.
In other words, this is where the rubber meets the road for the bulls.
Always appreciate the commentary and insight. I’m feeling confused today.
I see max 20 pts downside, 55 pts upside on SPX right here.. good odds to scale in.
thanks Chess… still hanging in there – barely
there was definitely no comfort found for bulls in RC’s poll where 88% of traders were expecting higher prices.
PPT seasonality clearly shows July as the worst month of the year. Why fight the tape?