A Healthy Pullback

 | Feb 10, 2012 | 11:07 AM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:




The open was poor and the dip-buyers aren't showing much interest, for a change. We are off the early lows, but we typically run back up fast once we start to bounce -- but that hasn't happened so far.

Breadth is running weak with about 900 gainers to 4300 decliners, and all major sectors in the red. Apple (AAPL) is up again, which helps hold up the Nasdaq and helps the Nasdaq-100 hide weakness below the surface.

The key is to see if a bounce is turned back and if we can breach the early lows. We've had only one trend-down day with a negative close in 2012, so it will be a change in character if the dip-buying suddenly dries up.

Today is nothing more than a healthy pullback. The biggest positive for the bulls is that they have been anticipating weakness for so long, so this isn't exactly a big surprise that catches folks leaning the wrong way. A couple of failed bounce attempts may change the mood, but most bulls seem happy to have a pullback that lasts longer than 15 minutes.

I have a few small trades going, such as Quepasa Corp. (QPSA), but nothing too aggressive. I often find the best opportunities in this sort of market since it tends to stand out more, so I'll keep on hunting.

Columnist Conversations

Friday night -- above $195 reestablished a small trading short rental. Up 57 handles from Friday's lows. Moved...
I can certainly be happy with a 4-5 point move in SPY. But that is clearly the outlier trade. How often does...
Huge momentum swing day in my opinion. Key upside reversals in all the major etf's with increasing volume...
As I mentioned earlier this week the difference between us is that I undertake short term trades looking for $...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.