The broad indices are featuring daytraders and machines basically playing ping pong with each other this morning. Those traders looking for an explosive gap in either direction to start the week are surely disappointed with this uneventful open. The oversold technology sector is seeing a mild bounce, while other areas of the market basically are hovering just below or at the flatline.
While I am not in a rush to become fully invested again, I am also not yet embracing the bear case as easily as many trader seem to be doing. The continued rotations not just into China but also the emerging markets as a whole, though I would not buy FXI right here right now, are encouraging and throw a wrench in the bears’ global risk-off thesis In addition, members of 12631 and my Weekly Strategy Session have their guard up for another rotation into a part of the world setting up very well.
Also note the apparent stabilization in the precious metals miners. More strength there would bode extremely well for those miners that have been basing rather tightly since late-September.
If you enjoy the content at iBankCoin, please follow us on Twitter