The three-week rally is running on borrowed time. While I do not expect any consolidation to be severe, we are likely to have some prolonged weakness soon. The markets rarely post more than three weeks of gains without a weak of consolidation. We are due. The rebound from the opening drop this morning was nearly perfect and the 176-point Dow drop was erased by noon. While that was an outstanding performance, it was too calm and neat. There will eventually be a longer decline. It may not be materially lower but it needs to be somewhat longer rather than a three hour dip. Investors need time to make decisions and decide to take profits and move into other positions. Three hours is not long enough.
New positions are only added on Wednesday and Saturday except in special circumstances.
NEW BULLISH Plays
No New Bullish Plays
NEW BEARISH Plays
No New Bearish Plays