The S&P has been chopping along in a sideways fashion for the last week or so. In an up trending market that is definitely considered bullish action as gains get digested, stocks move into stronger hands and prices can dip to more buyable levels.
The bears argue that it as opportunity to establish more short positions, as they are convinced still that the Apocalypse is just around the corner. It remains to be seen which side will be correct in their thinking.
Some of the momo names have been whipsawed of late, the shorts are sharpening their daggers on NFLX it seems, yet the stock was just entered into the S&P 500. Stocks like GMCR have already been shorted to death, but the bears were rewarded last night as the stock dipped 15% on soft guidance. Santa has definitely shown up, but he seems to be circling, and in a holding pattern over Wall & Broad for now.
My subscriber site has produced roughly 23 out of 24 gains so far in December. Here is a view of the P&L. If you would like to learn more, or would like to see past performance, just email me at [email protected]
Trade well and have a great weekend.