..reminder not to be complacent

To be ‘honest‘, Bulls,  we are actually curious to see if this market is capable of a pullback at this point.   Of course,  we don’t want a big pullback from this market, just a decent one.  It's always good to think such, today’s action may remind of such a possibility as we don’t all of us here and the market to get too complacent.    Today,  the market couldn’t find the usual suspects (buyers on shallow dips) at previous day’s 1182, but on a 3rd attempt today volume crept in and we broke to 1177.   Still, usual suspects came in last 30min and got some of the Bull turf back, but today’s action should wake some up, including the Bears, who may see and take this action as a shift from the norm. 

Overall, most shadow listed plays hardly gave back any ground during today’s selling.  Kind of impressive because most our widely followed plays/ sectors can be classified as momentum/ pretty high beta stocks of late.  If there's going to be any follow through to the downside next couple of days, watch the list for early clues as fast money runs both ways.. in and out. 

It has actually been a while since we've had some major downside volatility in this market.    Of course, there's always a saying "be careful of what you wish for"!    For us,  rather than having some hefty pullback, we prefer some meaningful sideway action.    Isn't it strange that we always prefer sideway action than the big up or down moves?   In the case of a bull market, it's a general indication that people, including DJIM, are usually "underinvested"!    Think about this, we have been shouting more sideway action more often than anything else.    Every time we beg for such, market basically just ignore you and marches higher.    This can definitely get tiring because as you end up chasing higher.    What we hoped to be a grinding year for 2010 has so far turned into a one way fast ride since mid-February.    We respect that.    We just have to deal with the phenomenon as it progresses.     There's no set strategy to deal whatever comes up from this market the next few months.    Even with some of the most reasonable prediction, we say anything is still possible… just look…Carlsberg staff strike for second day over ban on drinking at work; the co on April 1 made a decision to introduce new rules for employees on beer drinking at work…;)

The strong groups today are the tech stocks and a couple of story stocks.    SMH is actually up at the end of the day.    Things are rather quiet for the rest of week and it will surely gear up next week.    As far as pullbacks, 1174 would be a negative break of Feb channel.   A slight shift tone today, back in the picture ..Greek CDS’s widening to new highs and a few other noises,  therefore not a time to become complacent.   If it’s hard to find plays to upside now, it’s a sign to best keep nimble, reduce exposure and/or wait things out on the sidelines.