The anticipation of some corrective action has been growing recently but the market has done a nice job of frustrating the hopeful pessimistic by gapping sharply higher two days in a row. There hasn't been any major positive news driving the action but the reopening of the economy seems to be driving the positive sentiment.
Stocks reversed this morning as the second day of vicious rotation continues but so far the shift in character isn't triggering the sort of selling pressure that many skeptics and bears have been looking for. Breadth is still running positive with around 4000 gainers to 3350 decliners but the stocks that are leading are a completely different group than has led from the March lows. All the FAANG names are in the red and the best performing sectors are lagging badly today.
The setup for some acceleration in selling appears to be strong but the bears seldom seem to do a good job closing the deal when they have an opportunity. More often than not they end up as short squeeze fuel rather than a catalyst for more downside.
From a trading standpoint, it is hard to not root for more downside. The buy-and-hold crowd wants stocks to go straight up every day but the only way to get a good supply of new opportunities is to have some selloffs and maybe even some panic.
I've been a heavy net seller today and now start to look for some 'remounts' as things develop. I'm hoping for some deeper pullbacks to buy but the market doesn't seem to care very much about what I would like.
One position I have added to was in Grayscale Bitcoin Trust (GBTC) . This is a play on Bitcoin. I initiated a position in recent weeks and have now increased it as GBTC tests support at its 200-day simple moving average. That support is holding for now but a move under $10 would likely trigger some sell stops.