Buyers Limp To The Rescue

Bulls and bears duked it out Monday with no clear winner, but I give the latter a small edge for now because buyers were able to recoup only half of the 14-point drop that began the day.  We are in any event using a bigger-picture rally target that lies more than 100 points above, but it will probably have to wait for now. Of more immediate concern is whether we should place a ‘mechanical’ bid at the red line or instead wait for a more robust correction down to the green one. I’ll suggest the latter, but with the caveat that full-throated corrections that could make buying theoretically easier have been in scare supply since the Trump Rally began.

Whatever happens, we hold DIA puts to give us some leverage if sellers should romp for a rare change.

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