After the ugly action on Friday and a gap-down open this morning, it is natural for market players to look for a bounce. So far, there hasn't even been a minor try at a reversal.
The big problem is that the Friday action was so surprising that many folks were poorly positioned -- and they are still scrambling to reposition. They want to cut long exposure and are hoping for some strength that they could sell into this morning.
It is quite a change for the market to actually have trapped bulls. I don't know how many times I've written about the bulls being underinvested, and trying to add long exposure. They still may not have high levels of exposure, but it more than they would like when the price action is this poor.
As I stated this morning, I have no idea how this is going to play out. There are many very confident bulls and bears out there, but they have their agendas. It is rather amusing how confident some of the bulls are after totally missing on the Brexit news. They are now experts on predicting what happens next -- although they have proven their inability to forecast.
I made a couple of small sales this morning, as stops were triggered, but I did most of my selling on Friday. I have a shopping list and some small, token positions to start with, but I am in no rush. Acacia Communications (ACIA), Five9 (FIVN) and BioTelemetry (BEAT) are example of some things I'm watching.
My Stock of the Week, Seabridge Gold (SA), started off well, but you can't chase the precious metals too much.