22Jan3:41 pmEST
I Mean Are These Algos Something, or Are These Algos Something
To follow-up on my morning blog post, today's steady selling is taking a good many bulls by surprise as we work through the final hour.
My bias is to let some of the stronger charts of late, like VEEV, back-and-fill this week in lieu of my focus being to press for an imminent broad market rollover. However, I am open to the scenario of a rollover, and have no plans to step in front of one.
Overall, though, with names like AMZN and TWLO getting drilled it is tough to see today, just the first day of a dip so far, being a proper time to step back in on the long side. The prospect of a looming government shutdown deal could boost markets temporarily, a risk to shorts--Surely one can envision a scenario where the algos are watching us this week to see if traders turn quickly bearish into this dip.
Thus, keeping things simple makes the most sense. We saw a nice post-Christmas bounce with various software, healthcare, biotech leading the way for growth. But we are not yet in a confirmed new uptrend. Respecting this pullback while gauging the nature of the growth stocks' consolidation is likely correct.