Patience on the Ride

On the surface, there is not too much going on in the market this morning with the major averages flattish. However, individually I am seeing an assortment of early fades. The reversals are mild and not yet anything that I would call bearish. But they are indicative perhaps of a market becoming a bit lethargic. I saw quite a few bears yesterday start to acknowledge that they have been wrong in 2013. Everyone gets something wrong in the market, often frequently. But the pertinent issue here is that they are now admitting it and seemingly capitulating, which is part of the psychological process you would expect to see in the mature stages of a rally, looking out days or even weeks. Longer-term, I still have little interest in declaring a major top at hand.

For now, I am staying on the ride and trying to show patience in the form of identifying stock and sector rotations, until we see more bearish action to push me off that strategy. Keep an eye on electronics store CONN for under-the-radar momentum. And BNNY is basing tightly under well-defined resistance going back to last November, looking ripe for a big breakout.