Even the bulls are saying this parabolic market needs a rest, but markets this strong just don't fall apart suddenly. We have already seen evidence this morning of how quickly dip buyers will jump in when there is just minor red on the screens.
The reason that tops are a process is that straight up is that there are always folks that have underperformed in a rally that are looking for a way to catch up. Straight moves leave people behind and that drives them to buy quickly on slight pullbacks. The anxiety over being left behind tends to overshadow other concerns.
It is only when dip buying fails to work a few times that downtrends develop. The essence of a downtrend is failed bounces, but this market hasn't even had an opportunity to bounce back since there hasn't been any real selling in many days.
As I discussed in my opening post, my focus is to make sure I keep my accounts as close to highs as possible and to not give back recent gains. I've made partial sales in Acacia Communications (ACIA) , Yirendai (YRD) , Neogenomics (NEO) and MeetMe (MEET) . I added to a position in Synacor (SYNC) but new entries are so tough to find that I expect to be a net seller.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider MEET and SYNC to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.