Market has been up from pre market and some individual stocks are showing decent breakouts. However, across the board strength is lacking. As of now I see only 55 stocks up 4% or more in my universe. For a really meaningful turn the figures would be upwards of 300.
Excessive pessimism and high short interest often fuels counter trend rallies. Weak action last week created a good set up for the kind of squeeze action we are witnessing currently. By the end day if the market catches bid and the number of breakouts exceed 300, then it might be time for putting more capital to work. Currently I continue to believe better action and better profit opportunities will present in the upcoming earning season.
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