The indices are off their early lows and breadth has improved quite a bit, but the ADP jobs number has added uncertainty that is slowing down the bulls. While there are some pockets of momentum, there is plenty of poor action, especially among small-caps.
Apple (AAPL) continues to act lifeless. It is finally in the green (it has been red 14 of the last 16 days), but the dip buyers who couldn't get enough of it a couple months ago continue to show little interest.
It isn't great action but I have to keep reminding myself not to be too bearish. I'm not buying the bullish economic arguments or the idea that we are about to see a flood of new money into stocks. With the issues in Europe growing worse rather than better, and no further quantitative easing, I don't see any major positive catalysts.
On the other hand, skepticism has been a recipe for disaster in this market far more often than not in the last few years. Despite the constant and considerable economic headwinds, stocks have still managed to keep climbing. A big part of that is due to cheap money provided by the Fed, which is not likely to continue, but earnings have certainly helped.
I'm definitely not alone in my skepticism about the health of the economy, and that makes the chances of some upside spikes much higher, as too many market players are not well positioned. In fact, I suspect the old "wall of worry" is providing underlying support today. Folks aren't bullish, but stocks aren't acting that bad, so they inch in and add a little exposure just in case the market continues to improve. The longer we tick up, the more likely they do a little buying, and that is what helps an uptrend to develop.
I have a few late buys I'm looking to make but I'm not rushing, even though we are hitting the highs of the day.
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