The major irony of this market is that the folks that are rooting the loudest for the market to go down are the bulls and not the bears. Buying dips has worked so well for the bulls that they keep hoping for more downside that they can use to put cash to work.
On Friday, the low of the day came at the open and so far today the indices have traded straight up from the open. There are no signs of fear or worry. It is primarily strategic trading taking place with market players buying dips in their favorite names.
A couple of examples of dips I bought this morning are Axsome Therapeutics (AXSM) and InMode (INMD) . In both cases I'll be happy to buy more but I'm leaving room in case these indices roll over and test the early lows.
There are plenty of bears arguing right now that this Iran issue is significant and that it is going to lead to a deeper correction. That may be the case but there is nothing happening in the price action yet to confirm that. What the market needs to see before it can support the bear case are failed bounces and some lower lows. If the opening lows do not hold at the close then that would be some confirmation of the bear case but that is not the fact.
Personally I'm far more excited about the potential buys that I see this action creating than I am about the weakness.
One play I'm looking at if the Iran issue problems develop further is Cybersecurity names. Iran is certain to ramp up its cyber directed attacks. There is an ETF, ETFMG Prime Cyber Security ETF (HACK) which seeks to identify cybersecurity names although some of its components such as Cisco (CSCO) have only marginal direct exposure. Ping Identity Holdings (PING) is one pure play that I'm watching. PING needs to move over the recent range at around $25 to generate momentum.
(Cisco Systems is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells CSCO? Learn more now.)
