You Can't Always Ask for a Fade

After being lulled into a certain sense of numbness regarding the daily whipsaws and faded gaps higher we have seen in this market over the past few weeks (if not months), this morning's latest installment of the opening surge playbook has more than held its own within the first ninety minutes of trading. 

While that may seem like a minor, if not outright moral, victory for bulls in lieu of a decisive win, the truth of the matter is that bulls need to start somewhere. And failing to succumb to the daily fade would be an initial step in an attempt to get a Christmas/New Year's rally underway. 

At a minimum, bulls want to see the 2,674 area on the S&P 500 Index, the scene of yesterday's highs, reclaimed today or this week. We are actually a few ticks above that level as I write this. But we know the key will be holding over it. 

Furthermore, bulls can point to excellent action in emerging tech leaders, with TWLO being just one example of the running list of relative standouts we have been tracking closely with Members during this correction. A more standard Christmas rally would also feature laggards like SNAP getting off the mat, and pockets of unique momentum like NBEV in the pot sector. Indeed, we have all of those stars aligning, at least for this morning. 

My strategy for playing a potential near-term bottom still consists in taking some tester bets and only adding exposure if they are largely working. Tech and medical tech, not to mention some assorted retail, consumer, even energy-related plays are all on my radar here. 

But first things first--Bulls must continue to avoid the dreaded, and seemingly daily, fade.