So far in 2012 we have a perfect record of reversing the opening move. Today we opened higher despite poor unemployment and retail numbers and that was an invitation to sell. If we had opened weak, I'm sure the dip buyers would have already had us in the green.
It looks like traders are just being optimistic and trying to exploit a clear pattern rather than developing any big-picture views. Although we have been lingering near the highs for a while now, we haven't had strong buying other than the dip buying when we have opened weak.
The opening faders have gotten exactly what they have been looking for and now the question is whether the dip buyers will step in. The poor news is probably making them hang back a bit and I'm not going to be too quick to trust a bounce.
The momentum in junk stocks that I was so happy to see yesterday has pretty much completely died out today. Solar energy names look like a one-day wonder and I'm not seeing any follow-through in the things that were moving yesterday. You certainly can't blame traders for a lack of resolve when it comes to chasing that sort of action.
I'm dinking around with a few small trades like MoSys (MOSY) and Quest Rare Minerals (QRM), which have good early volume. But I'm playing defense and trying not to let recent gains slip. Gold is of interest and a couple I mentioned recently, Golden Minerals (AUMN) and Jaguar Mining (JAG), have some momentum.
