That's All Right, That's OK, You're Gonna Work for Us Some Day

"That's all right, That's OK, You'll all work for us some day" – Cheer for when the Harvard football team was losing during the game. Was since banned for Harvard University Band  use by Harvard Administration.

Much like the condescending, arrogant cheer by Harvard students at football games (not to mention preppy high schools around the country with losing football programs), a few software stocks are essnritlaly thumbing their respective noses at this steep market selloff the last two sessions.

Names like FEYE and ZS are just two examples of impeccable relative strength amid one of the sloppier Thanksgiving/December tapes I can remember. Heck, even 2008 saw a nice holiday truce around this time of year. But perhaps that is precisely the point--A surprisingly weak Thanksgiving/early-December market is likely the scenario which keeps the most market plays off-balance. 

Case in points: It remains tough to initiate fresh shorts given the violent opening gap down this morning on top of the abrupt move lower on Tuesday. A heavy overall portfolio cash position for swing traders is still likely the best way to buttress any individual longs, as well as the emotional and mental toll a market like this can take on even veteran traders.

As for standouts like FEYE, they are nice to admire. But as far as imminent buy signals, we still likely need better broad market before attacking them for a swing long. Still, FireEye has all the hallmarks of an emerging leader once this correction abates. 

Separately, the gold miners remain on my long radar, getting some safe haven action this morning. With Fed Chair Powell speaking this evening, it is hard to imagine him coming out swinging hard on the hawkish front, which could easily see the Dollar coming in some more. That recipe gives gold bugs another chance at a more meaningful rally.