Bulls Snatch Up Small Discounts Off Open for Strong Close

Wednesday, September 15, 2010

Tight, yet bullish tape

Stocks gave the bulls slight pause this morning with a small gap down but managed to march higher throughout the day and close on the day's high up 0.35%, retesting yesterday's highs of this almost 3-week rally in the market. The S&P 500 futures have been trading in a tight, 10-handle range between 1110 and 1120 for a third day now.

I have very little to add other than this thought. I have been mentally prepared for a pull-in around this level but it almost seems as though one may not come. I have been slowly scaling out of some stocks, now fully flat the SPY and AMZN in particular. Meanwhile I'm picking up shares of some midcaps I like. I have seen nothing worth shorting other than perhaps some extended leaders (PCLN, NFLX, CRM, AMZN) but even then, I don't see that trade as worthwhile. That would count as "hard money" in my book, to quote Laz. I would much rather wait for the pull-in and look for the next, much larger move. Apple (AAPL) is quickly retaking leadership of this market closing over $270 today.


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Updated Housing Prices vs Rent, Median Income ~ The Big Picture

Brandon R. Rowley
"Chance favors the prepared mind."

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