Nobody on the Road, Nobody on the Beach

You can almost sense how many traders are away from their desks today, enjoying a final bit of r&r as the summer will soon be out of reach. Incidentally, the senior indices and many individual charts are consolidating in a rather benign manner this morning. I see plenty of issues down roughly 1% or so. Some hot action traders are hanging out in the solars, trannies, and regional banks. Overall, though, I am letting the long inventory in my portfolio ride for now, as the selling appears to be contained on many fronts.

It is not all that surprising that Treasuries are bouncing here, given the ferocious sell-off last week. The key for those looking for a durable, long-term top in bonds will to now be on the lookout for a failed rally. I suspect bonds can push higher for a few days this week, though.

On the whole, I am still being methodical in my approach. As the market improves, so too will the amount of long exposure in my portfolio. Thus far, the bulls have done what they needed to this summer. Unlike the destruction in the summers of 2010 and 2011, the bulls proved this summer to be the boys of summer creating the lasting market memories with their valiant comeback in early-June.