No Quit in This Market

 | Mar 26, 2012 | 10:48 AM EDT
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There's a Monday morning frenzy as underinvested market players scramble again to add exposure in a market that just won't quit. With end-of-quarter window-dressing looming and overly anticipatory bears to squeeze, there doesn't seem to be a reason for this market to stop. It does feel a bit frothy this morning, but 45 minutes in we are making a new intraday high, which does not bode well for a reversal.

What seems to be driving the action are comments by Federal Reserve Chairman Ben Bernanke, who said that accommodative monetary policy is needed to reduce unemployment. That killed the dollar again and with the words "quantitative easing" in the air, who knows how much higher we can go.

I'm inclined to sell into a strong open on a Monday morning. If I have to rebuy some things later, so be it. But my discipline is to lock in gains and then start looking for new places to put cash to work. Strong Monday morning opens used to reverse a lot more than they do these days, but old money-management habits die hard.

First Majestic Silver (AG) and VIVUS (VVUS), which I mentioned on Friday, are good examples of the sort of thing that I sell down on an open like this. I have my eye on longs including InvenSense (INVN), Global Cash Access Holdings (GCA), Velti (VELT), Clean Diesel Technologies (CDTI) and Mitek (MITK), but I'd like to see this market calm down a little before being more aggressive. The one thing I know for sure is that I have no interest in looking for shorts right now.


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