Market that cried wolf?

Post-Thursday…“Today, marked the 3rd day this week where the market shoots up at open, but lack of courage (conviction) weighs on any further upside. On the flip side, following the shallow intraday dips the Bears/shorts don’t have the guts to press positions due upside risk fears from next week. The tension leaves the market at par for the week..SPX1180’s “.

A little excitement to some today, but if you’re following along here you aren’t getting caught up in a futile chase on stocks in the morning and you’re not selling off what you’re comfortable holding in the afternoon.  Today, all day, was simply an ES/ETF trade, stocks stayed at par throughout all the intraday commotion.

As we inch closer to the 2 pivotel ‘supposed’  day of reckoning market movers, days like today make it seem more viable that we won’t get the ‘sell on the news’ many are expecting, at least not the voracious one if the events come in as expected.   Reason being things may not change as shorts still won’t have the ammunition to press and longs won’t have the conviction all of a sudden to buy the market higher, instead waiting on more shallow pullbacks to buy.    Yes, we may get a short pullback of sorts for digestion purposes of this Sept-October rally for a few days,  but it may just be an ES/ETF driven move and any stocks getting caught up in the downdraft will be plucked up on dip buying.    Simply, have the Shadowlist components broken down in sectors we use and you’ll be able to tell quite easily if individual equities = the market drop, to judge it's severity. 

It may all just be a case of the market that cried wolf.  Today’s global eco data./PMI’s add to this believe that market has reason to start looking favourably to 1h/2011, even the last 2 holiday filled months in 2010, putting this week’s and past months mania events behind us.