Markets had a roller coaster ride Monday, as the formerly known “Mutual Fund Mondays” looked to be back in full effect. The major averages gave back a good chunk of their early gains, but finished with a mild late afternoon rally to keep the indexes in the black. The Nasdaq flexed its muscles as it has for months now, bettering the S&P 500’s daily gain of .4%, with a .6% move. Bearishness seems pervasive and with good reason, but perhaps to much so. We pointed out yesterday of the very strong short interest currently, and it seems most pundits within the media spotlight, are negative. I include myself in that camp. However we went long a little bit today, acting as contrarians, as the old adage that says, “do the hard trade”. Sure we will be prudent and keep our stops tight. Perhaps the early enthusiasm was first of the month buying and volume was substantial to begin today’s session. Follow the smart money? As always buy the leaders in strong groups and most importantly preserve your capital. Stay small within your positions. Wait for your spots. When the market resumes its uptrend their will be plenty of opportunities to participate in. There is nothing wrong with missing the first couple percent to the upside.
This article requires a Chartsmarter membership. Please click here to join.