The Bulls Hold Steady

 | Feb 22, 2013 | 2:30 PM EST  | Comments
  • Comment
  • Print Print
  • Print

The bulls were able to hold the early lows and walk slowly back to the highs as a short squeeze kicked in. It is very slow and volume is extremely light, but the market has done well when conditions are downright boring.

If you look back over the last few years you will see that one of the most difficult trades is to fade or short low-volume oversold bounces like we are seeing right now. Normally you would expect these types of bounces to invite selling by bulls stung by the recent pullback, but for some reason, we have a tendency to keep walking higher just when you think the shorts will make a stand. I suspect computer programs seeking to create short squeezes, but the message has been not to fade aggressively.

I was complaining a few days ago about how slow the trading was and how it would be nice to have downside action to shake things up. We did get the downside but it hasn't done much to shake things up so far. This is very dull action and even though there are a few things to trade, this environment does not invite aggressiveness.

We'll see how the close is, but I suspect the bulls are going to stick around through the end of the day.

Columnist Conversations

Well this is confusing...our models were calling for a run to 2072 before a bearish reversal would be possible...
Revenue Trend Apple is one of the most remarkable companies in the world, not just because it has the largest...
HOG has topped out. The stock's twelve day winning streak is ending today with and ugly reversal. HOG o...
Seems like there was a bid underneath at the crucial 2:45 p.m. hour.. day saver? still not sure..

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

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.