Back and Fill

It's Digestion day on the Street.

I unloaded most of the boat in the first half hour today, but I am hungry to buy back into a couple of ideas on this consolidation - not necessarily today; I may or may not nibble-back late.

There was a tremendous amount of relevant news the previous couple of days and the market swallowed it positive. And even though we are seeing clear lethargy today (MSFT blast-up has totally eroded now, reversed lower in fact), the environment has shifted and that is not changing in the near term; backing and filling is healthy action in that context.

We need a confirmation day, before we can confirm the trend in the market as higher; which technically is not eligible to occur until Tuesday at soonest. Look for a significant rise in the market, on rising volume, Tuesday or further-out to confirm a market bottom. In the meantime we have merely a market low.

Short term and possibly for a couple of months or more, buying weakness has likely replaced selling strength (short) as the optimum strategy.

Longer term, we have real problems, but we've know that for some time, right?

And now we can paint a clearer picture of just how the macro game is unraveling. George Soros has written an interesting thesis on this and I think it is an important read. Soros is not exactly the trader he was in the past, but making billions does have a way of notching lower ones priority for profiteering.

He is a guy who can still read the big picture, however, and that picture ain't quite glossy.