Why The Action Makes Sense
There’s a time and place for
everything. When
that something turns into a Slim Jim, the time is better spent
looking where the market is on other time frames, and finding the appropriate
stocks to trade when the market finally decides to make up its mind.
With the S&P 500 ETF
(
SPY |
Quote |
Chart |
News |
PowerRating) moving up
aggressively after a gap higher, you had to act quickly if you were going to
play in today’s game. After the first hour of trade, the session has been marked
by a whole lotta this…..
Go figure, right? Not really. The market reversed,
to the dismay of position-holding bears, who, in my humble opinion, were getting
quite boisterous with their short-term gains. But, the initial move also made a
lot of sidelined bulls fearful of missing opportunity out of the multi-day
pullback into price supports.
With a whole bunch of ‘scrambling’ by traders and
investors, the indices quickly reached a nice destination that would keep the
majority of folks on the edge of their seats, by consolidating around the 50% retracement level from our recent 52-week highs. In my opinion, you have to
admire how appropriate the pattern really is, and then consider the choice–is
the glass half full or is it half empty?