Give Yourself Some Wiggle Room

The bull case is far from quashed, despite today's selloff potentially galvanizing bears who have been frustrated with the recent rally. 

However, that need not mean bulls are home free. 

In fact, given the loaded lineup of earnings tonight (and then next week when it picks up even more) of CMG Pandora SBUX V, among others, giving yourself some wiggle room in the way of not too, too much net long exposure here makes sense. 

I have my eye on a few relative strength names on the long side for tomorrow or next week, depending on how this consolidation in the market plays out. 

One thing to keep on watch is Visa, an undisputed multi-year monster winner. Much like SHW this morning, if the bulls' good fortune turns for the worse it may not necessary mean terrible things for the broad market, but rather a changing of the guard in terms of leadership into another sector or stock.