Something of a common theme lately - selling into morning surges has continued to work from a trader's point of view. I took the occasion to sell out of my position on the early strength.
Thanks to the tuna-run in TITN and some recent well-timed long entries from Thursday and Friday, I am down no greater than 2% in all but one of my accounts now for the year (or less than 3% now from all-time highs made Dec. 29th). The newer long-side trades came from the leadership groups I mentioned the other day - namely Oil/Gas Exploration, Energy-Other (there was a nice set-up Friday when Goldman downgraded the Coal stocks), and a good one-two punch from the Construction/Mining sector. Unfortunately I cannot give you specific names at this time.
I won't be posting a great deal in the near term as I am dealing with some personal matters (not at home, fortunately). I am still keying on the long side and I like the strategy here of building trades at good entry points, hedging when necessary (or else keeping tight benches) and until the market shows better - selling into strength.
I expect we'll continue the wall-of-worry action and keep scratching higher without any tremendous downside drama (in the short to intermediate term), however the possibility of waking up to fresh lows is not completely out of the question.
In general however, it is clear to me the market is healthier than people's moods right now and at the same time the general trend is fledging higher.
That's a good environment for keying long, in all the right places.
...until it isn't.