The market has fallen into an every-other-day pattern, which means it's the bulls' turn to shine. We saw poor action last Thursday, a nice rally Friday, ugly action yesterday and now the buyers are chugging along again. It can make for tricky trading if you are looking for follow-through, but it can also bail you out if you let something slip.
The bears will argue that this sort of indecisiveness is a sign that a top is forming, but, as I discussed this morning, there still isn't any real technical damage to the market. There are warning signs, but there's good breadth and dip-buying interest today. Sentiment suddenly feels better, but we have to see how this market closes. If it reverses intraday and takes out the opening lows, that is a major negative. The bulls need to keep pushing all day to prove themselves.
I haven't been thrilled with my trading lately. Positions have been small and I have been dinking around too much, but there are stocks that continue to trend nicely, including Unisys (UIS), CVR Refining (CVRR) and BioMarin Pharmaceutical (BMRN). One new buy on my radar this morning is Infinity Pharmaceuticals (INFI), which needs to move through $36 with volume. Netflix (NFLX), my stock of the week, continues to push higher after a little dip this morning.
