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The downside was quickly rejected this morning, and the bulls are off and running now. My strategy for this market has been to methodically leg into more positions only as the market proves its worth. The psychologically important 1200 level was dealt with well this morning, and it is now bears holding heavy shorts who have to be a bit panicky at how quickly the shallow dip was bought. Thus, I am inclined to look for aggressive short squeeze plays.
The leaders today are technology, energy stocks, and even utilities are turning in a solid session thus far. The financials started off weak but are now trying to get caught up. It is also interesting to note that gold bullion and the miners are higher, as the metal itself had been a proxy of the fear trade throughout the summer. One gold miner that looks to be having a go at a clean breakout is BAA, a name that JakeGint has mentioned in the past here on iBankCoin. Keep an eye on it.
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The miners are very suppressed compared to Gold and have never had a run. $HUI could run all the way to 790 if they truly play catch up. Still in GDX.
Good point.
The miners compared to POG is very similar to oil services when oil broke out to the $115 level. Despite the underlying commodity going to new highs the stocks sold off with the rest of the market. Not to say it will stay that way, but it is something to keep in the back of your mind.