Are we there yet, ARE WE THERE YET??

Like every annoying kid in the backseat of the car, every trader would like to know the answer to the above question. What was the answer that you always heard from your Father? "You'll know it when we get there." Another analogy was when the Supreme Court once said, we can't describe pornography but we know it when we see it, or something to that extent.

The market certainly does look tempting to buy from a contrarian point of view after an approximate 4% pullback from its peak. However, the breadth is still lousy at almost 3-1 negative on the NAZZ, Semis and Small Caps are showing no oomph. Important tell stocks like DELL are not attracting enough interest either. Apparently, traders are finally starting to accept the fact that a downtrend is in place and it is not worth fighting. Concern for Oil which closed near an all-time high, just under $67/barrel is also catching a lot more attention. People are starting to sweat again over how Oil's effect will "spill" into the real economy.

We have made only very small buys on a few beaten up Blue Chips i.e. DELL. Other than that we do not see the familiar surroundings of home to let us know that we are there yet or even close.

-Patience Kids-

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