The Daily Dose of Trading Comments

They finally gave us the break yesterday with some sense of confirmation as the 50 day moving averages all became history. It came on increased volume but the internals were surprising good considering price action. It was the first day in a while that I can remember a little panic type selling occurring. The fact that we saw a minute amount of panic suggests a bounce this morning but don't expect it to hold. It will be sold most likely as now it's clear there are profits to protect and losses to cut. Folks that bought that 4 week topping action are mired in losses now and the majority are probably still hanging on. It takes a while for them to give up. Then there are those that bought in April and May that are now seeing their profits erode. How much do they give back? Hard decisions.

Patient ACe has been waiting for this topping action to play out and not once has he flinched. I've been calling for caution and bearish bias since the beginning of this month. It doesn't pay to buy and go away as they will round trip you for all you made.

Now it likely won't play out in a straight line, it seldom does. There will probably be the back and forth action that teeters and teases one into thinking that the turn is just around the corner. In my work, the corner is a ways off and it doesn't make a lot of sense to expect it around the next bend. Bias is lower and though we will get the push higher that causes short covering, you need more than a short covering rally to get something going. They have tried that for more than a week now with yesterday being the latest attempt ...