Why Waiting For A Pullback Isn't Always Smart

The market powered higher again yesterday. For many who have been waiting for a pullback, being on the sidelines has been costly. That is why when you think the market is going higher, it doesn't always make sense to wait for a pullback as an ideal entry point.

Often, by the time that pullback does surface, it is from higher levels. As such, you leave more potential gains on the table by waiting, and thus the risk is actually higher by being out of the market.

While sentiment has grown more bullish in the last few weeks, it is still not back to levels where it was earlier this year, nor is it back to levels normally associated with near-term tops in the market. Maybe this week's surveys will change that.

The market is pulling back only slightly in early trading, with most sectors mixed. Bond yields are flat at 4.82%. If you look at a chart of the 10-year like a stock, it looks like it is going higher. This could hamper near-term gains for equities.

In other news and notes:

• SII beats by 3 cents, raises guidance; stock flat
• PNR reports solid revenues, in-line guidance
• OMC beats by 4 cents; stock gaps higher
• DD beats by 5 cents; stock gaps up
• COH also gaps higher on solid earnings, guidance
• AMGN reports solid results, bright pipeline
• ZRAN misses earnings, lowers guidance; stock -10%

long AMGN, PNR