I was a little disappointed today with the strength of the move. Although we saw a roughly 2% gain in the indexes, I felt like there wasn't much punch to the move.
It was a nice gradual move up all day which I suppose is a good thing, but after such a strong decline, I would have expected a punch back. I think most players are still cautiously waiting on the side lines to see where we go before jumping in.
We are very early on this move, so if right ... we will be ahead of everyone as they jump on board, but if wrong ... well we know that story already. Keep tight stops on your trades at this point.
My afternoon analysis showed strength again and in fact, triggered a few indicators that will be important for the longer term larger players which may sway them to start nibbling long positions. So, if we can get them on board, we will see continued strength.
A few more days will tell us if we can break this trend and return moving up OR if this is just another fakeout. I certainly still see much more strength than the previous movements from the bottom. Bottom line, I remain cautiously optimistic.
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