Over the past week prices have been climbing without pullback. This has been frustrating as a lot of good stocks have been going up without giving an opportunity to enter. It has been important to exercise discipline and refuse to chase the low volume rise.
Now that the market has sold off hard, predictably, after bullish exuberance and silly expectations for another 1/2 point rate cut, the market is giving bulls a second chance to enter the best stocks.
Today is probably a little early to step in and guess where the bottom of the pullback is going to be. Aggressive traders might try, but prudence would suggest standing to the side and looking for some sort of confirmation that support has solidified.
Bearish bias has returned, however, and a Santa rally into the end of the year is sure to cause the bears pain once again. So keep your powder dry here as this dip is the opportunity we have been waiting for.
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