Buyers Defend Tuesday Conviction; Elon Musk Wants To Take Solar City Private

Morning weakness again proved to be an opportunity as volatility continues to recede from the marketplace.  A brief probe into the conviction buying from last Tuesday yielded a strong reaction from buyers who have managed to carry their control into the closing minutes of trade.

Breadth is impressive, given the flat tape, currently logging nearly 70% up.  Meanwhile pockets of momentum are catching fire across the stock universe, including shares of Solar City which are up over 15% after rumors Elon Musk is interested in making a bid to take the company private.

This is the sort of tape where a big mover like SCTY attracts the attention of many traders, which serves to further stoke the momentum.  These are great times to use Exodus, which does a wonderful job of identifying momentum throughout the day [members, ask me how, set up a demo].

Bulls will take on a win on the week unless some insane reaction takes hold after tomorrow morning’s Non-farm payroll data.  That means my model took a loss. For a second week.

Globex has normalized, ATRs are falling, and stocks are trading on their own merit, eviscerating short sellers along the way.

I am surprised to be saying this, but it looks like we are back to normal and it could last a few months.