The Need for Bold Action

A steady, persistent but somehow still limp noodle-esque rally with respect to underlying participation is showing at least some pause this morning, with pronounced fades in heavyweights AAPL and TSLA as I write this. Even NVDA went green-to-red, along with AMZN. 

However, despite how obvious the poor breadth divergences to price have been, not to mention the oh-so-conveniently timed press conferences and announcements by the White House and The Fed regarding the virus and various monetary policies (just when the market seems to need it most), we know dip-buyers have feasted on any slight blip. Note that I am even hesitant to call it a "dip" or "pullback," as we mostly have seen mere blips in the Nasdaq the last few weeks if not months. They say that ignorance is bliss, and perhaps some of the newfound market players splashing around in TSLA call options are being rewarded for not considering risk. There is, indeed, a history of that occasionally happening on Wall Street, with the market more often than not eventually teaching some expensive lessons in humility. 

Thus, the time for boldness is approaching for bears--There can be no substitute for it under this particular scenario. Unless and until shorts pounce and do not relent into one of these fades and inevitable dip-buy attempt, we will not see the limp noodle fold up once and for all. 

Elsewhere, as the prime time of Election Season gets underway soon amid continued violent protests in various major cities, gun sales seem like a good as a few of our Members have astutely noted. 

RGR is one of the big players, as is SWBI. And on the updated RGR daily chart, below, we note have an oversold stock at prior support. I am an interested buyer this week if the $70 area holds.