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Short Covering, Reasons to Buy...

Nice upmove today..Some would say the move suggests a return to an uptrend.  Frankly, I see it as a buying opportunity for the short sellers as they cover for the upcoming earnings season.

What has changed since last Friday?  Fundamental uncertainty hasn't, employment numbers haven't, high debt hasn't, spending hasn't... and so goes the list.  Apparently, the buyers are looking at earnings as the reason to buy.  I'd wait to see what the data says and more importantly outlook before jumping on a buying wagon.

Prudence says the trend remains bearish, and staying defensive/protect is the proper approach to the markets.  Sure, we'd all like the Bulls to return, but real bullish reasons are hard to find.

Outside of Initial Claims economic fixed events are not likely to have a major impact on market sentiment and therefore movement.

Summary:  Earnings is around the corner, the markets are positioning themselves as a result.  Let the data provide you direction.

Disclosure: No positions