The mild pullback this morning is not particularly significant yet, other than perhaps causing shorts to wonder if the market will, in fact, forcefully turn back lower anytime soon. Essentially, we are at that juncture where the market is probing to see how deep the expected pause will be, post-rally. Obviously, a shallow and short pause favors bulls, while a deeper one tends to favor bears. I took some nice gains out of AZPN TQQQ XIV yesterday inside 12631, and am ready to rotate that capital into charts setting up to break higher even after the market’s recent surge. I will continue to be methodical in my approach, though, as rushing all-in an all-out of the market at once is usually a mistake.
The small caps, coal, and solars are most intriguing this morning to me with their relative strength. Considering they are bastions of high beta small cap stocks, you can be sure I will be spending the rest of the morning stalking entries in those names. I pointed out the bullish setup in First Solar around Thanksgiving. Indeed, that prominent solar stock has followed-through on its breakout, and it turned out to be a bullish sign for the rest of the sector as well.
http://www.youtube.com/watch?v=rFIG-2Grclg
