Hard To Argue About the Strength of This Market
After a massive run-up going into this morning’s job number, the market was certainly set up for a selloff, and when the number came out (which was AWFUL), we certainly got a selloff…sort of. The market started the day with a gap, tried to bounce a bit, but then quickly sold off further. That was about it, however, and around 11:15, a bottom was put in for the day and the market rallied strongly from there, finishing well off of its lows. Although the final numbers will show decent sized losses, in my opinion today was a very impressive showing by the bulls. Remember as well that this was in the face of an AWFUL jobs number…
I went into the day short two stocks (SOHU and BEXP) and long only one stock. I was stopped out of both shorts by lunchtime and began to go long again in force as I saw setups I liked all over the place. This may be the wrong play as perhaps the market needs to pullback further from here, but given the action intraday, I think it was the right move.
Even in the morning selloff, there was no damage seen on any of the charts I went through. If you went solely by the charts of individual stocks, you would have been shocked that the market was down over a percent. A slower pullback with more consolidation would have been better, but based on what we saw today, this might be it. It looks like dip buyers are back in the game and those underinvested during the recent run-up are looking to get invested quickly.
My family and I are lake-bound for our week-long summer vacation, so I am putting a video out now with the stocks that I am watching closely next week. I skipped the overall market commentary as I think today proved for now that this market is one to buy, but as always, make sure you use stops and don’t hold losses in case this market turns. I will have my laptop during the vacation and although I probably won’t be posting much, I will be tweeting occasionally and maybe sharing some thoughts as I get them. Best of luck in the week ahead – it will be quite hard to top this past week. So far, I am liking the month of July much, much better than June.