What has saved the market over the past week is that the bears have been squeezed each time they look like they are about to press to the downside. Just when it appears that downside momentum might start to build, the buyers (in the form of computer programs) step up and there is a sudden rush to reposition.
We saw this on several days last week and it seems to occur on an intraday basis quite often but today the buyers aren't having much success in trapping the bears. The bears are not in a big hurry to cover today and don't seem too concerned that the buyers may pull off another squeeze like they did last Tuesday.
I'm not doing much today but I am watching an interesting name.
My Stock of the Week is a play on growing tension with Iran as well as cybersecurity and infrastructure. Parsons (PSN) is a recent IPO that was founded in 1944. It does a substantial amount of work with the Federal government and is involved in some of the key areas that even politicians agree are critical.
Here is an interview with the CEO on CNBC that took place when the stock began trading a couple weeks ago.
Unlike a number of other recent IPOs, PSN is profitable. It will be reporting its first quarter earnings soon and will have initial coverage from underwriters in the next few weeks.
I'm a buyer on pullbacks or, alternatively, on strong momentum.