Even the Bulls Are Rooting for Weakness

 | Apr 15, 2016 | 12:01 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:










It is a lazy Friday and the indices have had a good run and are in need of a rest, which would seem to indicate that some selling might take hold. That may sound logical, but so far the indices continue to hold up remarkably well. Breadth is running 34-30 in the green and the indices are flirting with minor gains. Weakness in oil is being shrugged off and there isn't any notable weakness to be found.

I mentioned this a couple of times yesterday but it bears repeating as it explains the market. Strong markets don't just suddenly reverse and close down. A move like we had off the February lows creates a big supply of underinvested bulls and they provide very stubborn underlying support.

One of the ironies of this market is that many bulls are rooting for weakness along with the bears. They want some dips and weakness to buy. They can't keep pace with straight-up action. Their best hope of relative performance is to buy on pullbacks rather than to chase strength.

When you look at the market through that lens, the action makes more sense. People aren't buying because they think fundamentals are fantastic. They are buying because they are trying to keep pace and are petrified they will be left behind again. There just isn't any short-term benefit to a bearish bias or calling a top.

I'm dinking around with various odds and ends, but nothing very substantial. Names like China Customer Relations Centers (CCRC), DragonWave (DRWI), Editas Medicine (EDIT), Integrated Electrical Services (IESC), Mitek Systems (MITK) and Yirendai (YRD) are on my watch lists, but I'm just flipping them for quick trades. I'd prefer to build some bigger position trades, but I'm not finding much I want to work with right now.

Columnist Conversations

there is some very heavy selling today and poor price action in Facebook today.  in the first hour the st...
Stock has been roasted last five trading sessions. Time to rotate into Ford ahead of big CEO long-term plan re...
Equity futures were up slightly just before 9:30 PM Sunday night.
Spent a good amount of time with PayPal CEO Dan Schulman this week...and came away fully understanding why thi...



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.