Bears, man! WHERE DID YOU GO!?
Actually had the S&P 500 down about about 8-9 points lower at one point today, but that ended with a sharp buying spree that took price back up to just below breakeven. There’s no one out there to really push stocks substantially higher, but count on the bulls to rally around any kind of dip that emerges.
Traders are fanatical about seizing on any weakness, deeming it an opportunity to buy. But once we get price back up to break even, all bets are off.
That has been the trend for the past two months and it has shown no signs of stopping. Sure we are out of the Darvas box from last month, but we aren’t progressing. Instead once the bulls make a new all-time high, no matter how small, it stalls out there until the bears can sell the market off a few points to allow the buyers to buy more but without actually trending the market higher.
This pattern of the last two months has been extremely frustrating for traders and adds credence to the “sell-in May, Go Away” or as I prefer to call it, “The Dog Days of Summer”.
But hey, if you think it will be different this time, I’ve put together a few short setups that you can take a look at and see if any suit your trading style.
As for me, I just want more action out of the market. More rallies, more declines – at least bigger ones. The state of nothing, isn’t impossible to profit from, but it does’t make it fertile grounds for doing so either.
Here’s the list of short setups to watch:
