Back In The Saddle

Ahh, that's better. Everything appears to be up and running smoothly. Oops, I hope I didn't jinx myself!

The markets were relatively flat today, but that's okay. After Tuesday's outsized rally, a couple of days of benign consolidation is fine. The markets are already oversold, so a pause is expected.

I don't know how we will react to what will likely be a poor jobs report tomorrow morning, but even a mild selloff would be okay. As long as we stay above our 50-day averages, which are now turning upward for the first time since last November.

Semi stocks led the way today. I can't remember the last time I said that, but it bodes well for tech. Lots of stocks were breaking higher today, including solar stocks, ag, materials, financials, etc.

And for the 3rd day this week, the put/call ratios were again above the 1.0 level. That indicates continued skepticism with this rally, which is good from a contrarian perspective. Markets love to climb a 'wall of worry'.