Ignore the Shrill Top Calls

 | Jan 17, 2013 | 10:36 AM EST  | Comments
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Stock quotes in this article:

cvrr

,

FF

,

dnr

There is no shortage of commentators calling for the demise of this market, but here it is hitting intraday highs following a poor Philly Fed number. I will repeat what I've written so often lately: Don't turn bearish until there is price action to support that position. It is a mistake to keep trying to anticipate a top.

Breadth is very strong at better than 3 to 1 positive and there's good action in chips, homebuilders, retail and a number of other groups. There isn't any standout momentum, but Apple (AAPL) is back in the green and buyers are obviously anxious about missing more upside.

Even if you stay bullish, like I am, it isn't that easy to trade this market. The buying is steady but slow and it is not easy to be aggressive with buys. I definitely would like to put more money to work.

I took an initial position in the debut of CVR Refining (CVRR), a stock that pays a substantial dividend, and I'll be looking to add to it. FutureFuel (FF) is a chemical name that I like due to good increase in volume. It needs a few more ticks to trigger my buy point. Denbury Resources (DNR), which I mentioned as a chase, continues to inch up but I'm struggling to find much new. I'll keep looking and try to ignore the increasingly shrill top calls.

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