Don't Freeze Up

Knowing this market, we could be squeezing higher back in the green by the time I press the "Publish" button behind the scenes on this blog post. If so, file this under another, "Ok, Boomer!" warning in a market which newfound unapologetic bulls can fully appreciate. But the main point is that if markets actually do follow-through lower from current levels, the market has conditioned a majority of players to not only buy the dip aggressively, but to hold and hope their existing long inventory snaps back to fresh highs--And that strategy has worked like a charm, indeed. 

Nonetheless, I sold the balance of my trading longs into this morning's reversal lower as it may prove to be the start of a broad market rug-pull, of sorts. TSLA, below on its update daily chart, has been lagging this whole week despite the Elon-forBitcoin $1.5 billion bet. TSLA weakness could have a ripple effect across tech and many other names which seemed to have rallied with Tesla the last few quarters, too. Moreover, the chips in the SMH ETF were higher by more than 1% and now red. 

We do have Fed Chair Powell speaking later today at 2pm EST, which could also serve as an excuse for more fireworks, on top fo the stimulus news out of D.C.. 

The reason why this is key is because a morning fade is one thing, and happens fairly often in bull markets. But to see a morning fade hold into the afternoon or even build on itself would be a more potent development and stronger argument, frankly, for a material pullback underway. 

Let's see if Powell can keep whispering sweet nothings to equities later today.