The vast majority of market players seem to be stunned by the vigor of the bounce this morning. The bounces have been like clockwork, but the strength of this one caught many by surprise because there doesn't seem to be any real positive catalyst. The biggest positive that we have is that no one seems to think there are any positives.
In addition, I suspect that the algorithms are hard at work helping to accentuate the squeeze action and that some end of the month window dressing is taking place as well. Apple (AAPL) and Google (GOOG) are always good illustrations of the end of the quarter games that are played.
The indices are at their highs and that makes it unlikely we will have a sudden collapse, but my confidence in further upside is very shaky. So many stocks are overbought on light volume that you just can't load up and trust in further momentum, although that has definitely been the way to go.
I keep taking profits when I have them and struggle to put money to work. I definitely would not be unhappy to see a good shake, as there just isn't any way to do much other than quick long flips.
We are rolling over just a little now and we'll see if the bears can do anything. It is the close that counts, but you have to wonder if the dip buyers may have expended too much energy with the strong action this morning.
More from James "Rev Shark" DePorre: