The better-than-expected ISM number caught the bears by surprise, and now the bulls are pushing to squeeze us even more. The first day of a new month tends to have a positive bias, and the bulls were ready to run at the open, but it looked like we were going to fade a bit when the ISM news hit and spiked us hard.
So often the skeptics find themselves scrambling to reposition when we have these sharp spikes, and that is what keeps them going. As I've mentioned often, this market has had a tendency toward V-shaped moves, and it is caused exactly by this dynamic.
I'm not yet convinced that the market has regained its health. In fact, I'd expect this sort of action that makes folks more complacent, but the buyers are looking good at the moment, and I'll give them some room to push a bit more.
My No. 1 pick, Sarepta Therapeutics (SRPT), continues to do well, and I've sold that down. I flipped Qualys (QLYS), which I mentioned Friday, and I haven't done much new buying today. I'm feeling a bit out of step, and I'm going to take it slow.