The early market dip turned out to be a bear trap. The folks who faded the opening strength were feeling good for about an hour, but the dip buyers made a stand and have pushed us to new highs for the day.
The biggest positive the bulls have going for them is that there is too much skepticism. It is difficult to believe that anyone thinks that the European problems are close to a resolution, and maybe no one really does believe it, but it has created the conditions to squeeze us higher for now.
My impression is that the buyers are short termers rather than true believers, but as I've written so often, it is always dangerous to underestimate the strength of these oversold bounces. The fact that they are so hard to trust is exactly what causes them to continue.
I used the early strength to cut back some long positions, so I'm lightly invested. I have a couple items on my radar that I'll consider near the close, but putting any substantial cash to work remains very tough.
One bottom-fishing candidate I've mentioned in the past is Web.com (WWWW). There was some insider buying recently and it is starting to act better, which makes me more interested in adding it. I prefer to buy stocks when they are going up rather than down, and this one is finally looking a little more positive.