With the continued random, anemic price action, traps are present everywhere for longs and shorts, scalpers and swingers alike. As long as the bulls continue to defend, albeit in a weak manner, the 1357/58 level on the S&P 500 index and 2,900 on the Nasdaq, the bears are going to have a tough time aggressively shorting for any substantial period of time. Even with that at play, the bulls are looking at plenty of post-earnings blow-ups in CSCO and PLCN, just to name a few. In addition, the pin action to the downside is working in the cloud space, as I suggested CRM a way to play the RAX sell-off the other night.
When you add up all of those factors, that annoying heavy cash portfolio position alleviates an awful lot of stress of trying to force trades in a low probability environment. This type of a market has a knack for making even the most talented and veteran of traders press to force something to happen, instead of letting a better spot present itself. I also want to point out that plenty of 12631 members caught the nice move in PATK. This is a stock that neither @RaginCajun nor I were in, yet our talented members killed the trade in a tough market.
I am probably not going to make too many trades today. The bulls are going to need to put on a better showing than this, and so do the bears, for that matter.
$PATK indeud.