Tuesday, July 10, 2012
Lack of conviction on Buy side
The markets have stalled since making a huge move to the upside with breadth thrust on June 29th. Follow through buying is lacking. Lack of selling is also part of the problem. What this means is we are probably range bound. Earnings season is upon us which is not helping either due to lowered expectations of earnings. My breadth indicators point to a gradual improvement in breadth not due to aggressive buying but due to lack of selling. If I see huge buying like we've seen on june 29th I would probably put some cash into play.