Today's intraday reversal was nasty, without a doubt. The bulls (me) have been getting a little too excited and a pullback like todays was a wake up call to be more cautious. I was looking for dip buyers to come in the last hour. That did not happen.
Today's reversal on heavier volume is nasty but is it enough to sell all long positions. Absolutely not. I still have most of my longs acting really well but did raise more cash today on some of my laggards. One reversal day does not make this a top. We will have to see if there are more down days on an increase in volume in the indexes and stocks start breaking key supports, before I get bearish. Remember, I like to follow the trend, no matter how scary one day can be. Which, btw, did not scare me too much today.
I saw a lot more bears start calling the top today which signals to me this rally still has some legs to go probably. People are still very bearish after the whole move up since April/May bottom, in the chatrooms I montior.
While they will continue their bearish stance, I will continue to make money on the long side as they are still presenting the best charts to play.
As weak as today seemed, oddly enough, one of the strongest sectors showing up in my scan of great charts today is ELECTRONICS. I would have figured with the nasdaq down today, they would not have performed well. But they did along with MEDICAL.
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Aloha
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