We have some "they can't take them down so we might as well buy them" action.
After drifting around with a positive bias this morning, the buying is picking up as we hit new intraday highs. Once again, fear of being left behind as the market levitates is driving the action. There really is no reason for the buying other than fear that we won't dip again and the market will continue to run away.
The folks in the media like to portray this as great market action, which it might be for buy-and-holders, but it is not easy at all to navigate for traders. The prudent move was to take defensive steps when we broke down last week and on Monday and there has not been any easy add points subsequently. We just went straight back up without a pause and forced anyone who wanted in to chase.
I am doing some trading, but am irritated that I've not been more aggressive with the things that are working like Xinyuan Real Estate (XIN). I started a position in Sangamo Biosciences (SGMO), which has some recommendations and a $16 target today. I see a few other things I like also such as StealthGas (GASS), but I'm not too excited about entry points right now.
A few days ago I was feeling good about the chances of a correction that would give us better trading opportunities. Unfortunately, it didn't last a day and now we are right back where we were when everyone was hoping for a buyable dip. The best thing we can do is just keep plugging away and dig for trades that work in this environment.