The markets rose yesterday but the Dow was well off its highs of the day and I see a trend forming over the past few days I wanted to point out. I noticed the triple top today and tweeted about it a few minutes after 3pm est, because I didn’t have time to do a post as the last hour is my busiest. The ease of Twitter is brilliant.
I also opted to cash out of my longs in the event we do have a sell-off today as a pullback here would be very healthy. If we continue to move up like we’ve been, I think we’ll be heading down much quicker than I thought. I was really starting to get bullish as we rebounded from the morning sell-off, but stalling where we did in the pm was very telling. The buyers are just exhausted.
The NYSE McClellan Oscillator was as overbought at yesterday's close as we were oversold in October. This is no new bull so I think we’ll have a few days of selling pressure that should set up some nice entries in stocks. It’s not going to be easy to buy this sell-off as the market is going to do its best to scare investors, but I still think the dip should be bought. I may be wrong and we continue higher, but the odds favor a pullback.
I entered DXD at the close and really wanted to buy some gold/silver stocks as they surprised me, but the volume just wasn’t there. Maybe tomorrow.
Pink circles highlights the extreme highs/lows.