Despite ISM, Some Sell Into Rally
Despite the stronger ISM services index, the market is clearly seeing selling into the rally.
One active trader who went long late yesterday sold a portion of his gains this morning. While emphasizing he was not going back to shorting the market, he did say "we have not been getting paid to hold for big moves -- only trades."
When will he stop selling into modest rallies? "Until the market proves we can hold longer." There's the problem: Professional traders do not trust the rallies yet.
Nice move in oil service stocks, as Exxon Mobil has said they will keep capital expenditures above $125 billion for the next five years. Street has been long oil service stocks on exactly these assumptions.
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