Poor earnings news from Disney (DIS) and Macy's (M) have some market players wondering if maybe the bears might have a point when they talk about the possibility of a recession. Unfortunately for the bears, there hasn't been much fear of a slow economy due to the always-helpful central bankers, but what would happen if that confidence began to erode?
That is the scenario that many bears foresee, but so far it isn't gaining too much traction. We are seeing some severe pressure on retailers today, but the dip buyers are putting a bid under the market and breadth isn't terrible -- at around 28 advancers for each 35 decliners.
Yesterday, it was the bears and underinvested longs that were caught by surprise. Today it is the bulls that were caught wrong-footed by a quick shift in sentiment. It makes for a very tricky market to trade. If you aren't managing positions careful, you can easily be burned.
I'm focusing primarily on precious metals and mining stocks. They look ready for another push higher after some corrective action over the past two weeks. I'm still holding DRDGOLD (DRD) in the gold sector and I remounted some Teck Resources (TCK) -- a recent stock of the week.
A couple other charts of interest on my screens are Celator Pharmaceuticals (CPXX) and Synacor (SYNC). I'm still not finding much to be aggressive with but it's a bit easier when we don't have the straight up action like we did yesterday. The hunt continues.