Foamy Bears

A big thanks to all of you who participated in my Open Forum post last night. As far as feedback goes, I can tell you that there is more than enough caution or even outright bearishness to go around, based on all the responses I received.

With that in mind, you can see today that the bears today are trying to crack the market lower after yesterday’s reversal from multi-year highs on the S&P 500. Despite the indices being slightly red at the time of this writing, I am seeing plenty of individual stocks acting well, some even very well, such as my long EBAY holding inside 12631. Among the leading sectors are the financials and consumer discretionary stocks, while the highly defensive consumer staples (XLP ETF) are lagging.

Thus, the overall theme of the action appears to be risk appetite is still much improved over what we saw earlier this summer and spring. As long as the selling continues to be contained, I would not be surprised to see the multitude of bears finding themselves trapped inside a hot container of coffee.

Finally, note silver continuing to bounce here, though it still has a lot of work to do to repair that daily chart. Treasuries are bouncing from oversold conditions as well, but stocks seem none too shaken by it. Perhaps that is a sign in itself.