Bring Your A-Game
Pro golfers need to bring their “A-game” if they hope to compete with Tiger Woods. Similarly, you better bring your “A-game” if you want to compete in this market. Since Super Stallion Ben came to rescue the markets (from what I do not know), the bulls have been emboldened by the concept that a bottom was set through some capitulation event that never happened. Throw in a dangerous (my opinion) fiscal stimulus plan and rumors about monolines getting bailed out and the media commentary made it seem like the world’s problems were solved. Many stocks improved last week - that I agree with. However, the upvolume in many advancers was weak and that is putting it mildly. All that suggests a short covering rally - Ben is great at whipping those up. But when it comes down to market action, last week was all about a reduction to selling pressure. And as I have said, that is one thing I needed to see before believing that we could head higher. Now it’s time to come through with the second component - real buying on the long side and an end to the pattern of selling rallies. The bulls have done well for the past week, but they haven’t been challenged. If they want a rally to continue, they better start showing up with their A-game. The Fed Rate Cut story has a few more days to play out. Then what? The fiscal stimulus plan has a few more days of PR. Then what?

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