Inside 12631, I locked in the final piece of a 13% win in Krispy Kreme this morning with the stock popping on an upgrade. I see there are plenty of persistent calls on Twitter for an imminent market downside reversal. Trading out of fear because of what other traders are constantly warning about (to no avail) is usually a poor strategy for swing traders. Instead of ignoring the tape, you are better off ignoring them.
There is also the matter of whether Apple’s continued weakness is a blow to the overall bull case for equities. I am seeing nice sector rotation, with financials, small caps, even solar and energy stocks acting well. With that kind of action, it makes it difficult to latch onto the bear thesis that Apple is ultimate harbinger of gloom and doom for all of us.
I am still being deliberate and methodical in terms of increasing my portfolio allocation to the long side. However, I am happy to increase exposure as the market defies top-callers who view this rally as a mere overreaction to the Fiscal Cliff deal.
