The Bounce-- Better Late Than Never
Now we're talking. The late day surge in stocks is more along the lines of what I had been looking for. If the market doesn't pull back, I think it could catch even more bears short, and offer a nice squeeze higher.
Stocks rallied almost across the board, save for the semis. Small-caps led the way, up +2.0%. Large-caps were up +1.1% and mid-caps +1.2%. By sector, energy stocks spiked higher by +3.5%, brokers were +2.4%, and biotechs were +1.9%. But the lowly semis were down -0.4%.
Volume was not as high as yesterday, which was expected. I would still like to see a high volume follow-thru day early next week. Breadth was solid, with more than 80% upside volume. But new lows still exceeded new highs.
Measures of investor anxiety fell today, but things like the put/call ratio still have a long, long way to go to unwind all of the built up pessimism. The AAII figures came out today, and showed an increase in bearishness (even more bears than bulls).
Still not too late to add longs here. I will be back with some notable stocks in a bit.