What happened to our nosedive? After a down open, stocks continue to hold up well in what could only be described as a fairly flat market--about even number of stocks advancing to declining, modest volume, financials and techs modestly to the upside. Only a few metals companies like Freeport McMoran and Alcoa are down a couple percent.
So what happened? Fast money traders came in and aggressively bought financials at the open, then took profits a half hour later. Some financials shorts covered as well. Good for them. Now we need real money to sustain the move off the lows, and that's where we will likely have a problem. The general trend has been to buy dips, sell rallies, and believe it or not we did have a rally today.
But now we are in "sell on the rally" phase, and stocks are a bit weaker already. The concern is that we are now easily set up to drift lower for the rest of the day, as the fast money has already made money and may just sit on the sidelines.
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