A Career of Comebacks

Dip-buyers have certainly earned their keep and built a well-deserved reputation as legends in this bull run over the last few years, yawning off even the most cautionary of exogenous events and even, at times, bearish of technical setups to propel stocks back to fresh highs. 

Given this morning's weakness in the broad market on the back of some ugly earnings reports, namely Macy's and SNAP, their test of mettle is once again going to be on full display. 

At the moment, the wildly swinging small caps are a concern for bulls, with the IWM ETF back under $138 as I write this. But bulls will counter that this is merely another brief shakeout before we turn up anyway. 

Therefore, I am specifically going to keep a close eye on the manner in which dip-buyers are treated today. If they are soundly punished into each attempt then my plan is to reduce some long exposure and perhaps pick up a few more shorts.

Also of note is the fact that bonds are red here, viewing TLT as a gauge, albeit bouncing as we speak. However, gold miners are getting a more standard safe-haven bid here, with GDX clearing the $22 level seen on the 30-minute chart, below. 

If GDX can hold over $22 going forward it will give gold bugs the best chance they have had in a while for a tradable rally, regardless of whether or not broad market dip-buyers can continue their career of comebacks.