We bit, and then we un-bit.
I am referring to the talks that went on today in Washington and how they created a spike in the averages out of hope. But then the sellers came in because they figure the good feelings will imminently break down and more fractious members of each party will assert their negativity.
I like this action if only because it won't lead to a big decline on Monday when nothing happens. The market is acting sold out here, meaning some of the more destroyed areas are either bouncing or aren't getting hit hard at all.
In particular, I would point out the master limited partnerships are doing well -- and they have been savaged. Look at MarkWest Energy Partners (MWE). It was marked down when it announced an 8.5-million-share secondary, sending the stock down a couple of bucks immediately. When it was priced at $46.50, it looked like a reasonable deal, but then the MLP raids occurred for whatever reason and it clung to that price instead of bouncing, as they so often do after the deep-in-the-hold pricing.
Sure enough, this afternoon it's at $47.86, and that means you made a nice score if you bought.
This could just be oversold gibberish, but I think this group, which now has many extremely high yielders, is finding its bottom, perhaps because neither party favors stripping its unique tax status.
There are some other bouncers in apparel and housing, but those could be very difficult to hold. It's still be-careful mode, but the rally from the bottom is good provided the market doesn't soar into the close.