Downside Halted

Despite the nasty fade intraday on Wednesday, as well as the plummeting futures early last evening, the bears are the ones scrambling today. The market opened flattish, but has since been picking up steam on the long side. Once again, the key will be if the bulls can hold these gains through the New York lunch hour, unlike yesterday’s giveback.

As I indicated on my video market recap yesterday, the biggest issue with the market technically is that there is no issue. Despite the negative macro headlines for United States and European sovereign debts, the price action thus far has indicated that all of this is one big non-event.

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…but the price action is still constructive.

Bearish arguments tend to attract those who consider themselves intellectually refined, as the cautious stance usually sounds well thought out. However, at the end of the day putting on airs of intelligence is entirely irrelevant, and usually harmful, to your portfolio balance.

Looking at the daily charts of the S&P 500 and Nasdaq indices, the “throwback'” thesis is clearly in play. In addition, despite the intraday moves, the bulls have not given up nearly as much as bears would have you believe.

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I like what I see and I am making a bunch of swing trades. My business associate and co-12631 leader RaginCajun is absolutely crushing a bunch of intraday trades too inside our state of the art chat room called the “Pelican Room,” in honor of R.W. Pelican. Come check us out.

Although I do not own any of them, check out the chemicals today. ROC is screaming out of a bull flag, and HUN PPO POL all look to be setting up behind the ROC.

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I have just been served papers indicating that the estimable Mr. JakeGint has filed suit against me for intellectual property theft of gold mining theses, trademark infringement, conversion, fraud, falsely impersonating a gold bug, among other claims. I am currently in the process of retaining counsel.

Developing…

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The market had wasted no time running higher this morning. After the past few days of selling, combined with the negative macroeconomic headlines being pumped to no end by the financial media, it was understandable to see sentiment amongst traders quickly turn pessimistic again. However, the charts of the key indices, most sectors and leading individual issues suffered no real technical damage. In fact, I would go so far as to describe it a a non-event, in terms of price action.

As the morning progresses, the key will obviously be seeing whether the meat of this move higher sticks. If it does through the lunch hour, then we are well on our way to a trending day. Moreover the “throwback” thesis to the trendline that I have been discussing of late on the S&P 500 will have proven true, which would fortify the bull case even more.