When you look at the daily chart of the QQQ ETF below, the sharp move from entirely below the lower Bollinger Band a few days ago up through the the upper one this morning tells you all you need to know about this market. We have seen many V-shaped moves since last Friday, across the board. Indeed, each broad market pullback in 2013 has been a nasty trap to entice enthusiastic short-sellers. And underinvested traders, like myself currently, are on the lookout for long inventory if this rally holds throughout the morning.
The 3D printing stocks, DDD PRLB SSYS, are having a good session thus far, albeit on light volume. Solars are cooling off from yesterday’s pop. And the homebuilders are notably lagging, again.
V-shaped moves often lead to sloppy charts with many visceral reactions from traders who either boldly bet for or against the sharp recovery. Patient swing traders will eventually find a better spot to become more involved. But, for now, even if you are not a bear you still have to bear with this market as it grinds higher.
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patience is your middle name
aww..