It was a "don't short a dull market" day. The old saying worked well today, as we very slowly drifted upward after a poor start and then accelerated into the close. At one point, the Nasdaq was around 2 to 1 negative, and it ended the day with about 1,300 gainers to 1,100 losers. What was particularly impressive is that the Russell 2000 (IWM) small-cap index continues to lead. Money is flowing into the small names while the Nasdaq-100 lags, primarily because of Apple (AAPL).
The action today is a good example of what I've been writing lately about not trying to anticipate weakness. Trying to short on a day like this is an exercise in pain. We have seen this happen so often in the last few years. It just hasn't paid to fight the trend, regardless of how compelling the short thesis may be.
I have to admit I was surprised by how well the market recovered intraday. I made a few poorly timed sales this morning, but I did add a few things late. I have no desire to fight a market that is acting this way, even though it did put me to sleep for a while.
Tomorrow we have some earnings reports and hopefully some fun and games. Have a good evening. I'll see you in the morning.
