Nasty Pitch

The last few days I've felt like I've been in a batters box against my home team facing their elite staff throwing nothing but the nastiest arsenal of sliders, curves, two seamers, splits and brush back pitches. What can you do after getting spun into the dirt from a 2-8 curve than get back up and brush yourself off for the next one to fall into your zone.

It's a useful reminder that the market can do anything at any time and this is one of those times when everything that seemed so clear is now fuzzy and out of focus. Everything I follow screamed correction and just when I was positioning myself to take advantage of this the floor didn't fall in but levitated, negating most of my ETF sell signals today and bringing the Russell and NASDAQ back to the forefront. I felt like this was strike two swinging like a whirling dervish, so the only thing to do is stand up and brush off and look at what is happening now.

With the NASDAQ breaking out of it's range up 1.83% on higher volume and new 52-Week highs while the Russell rebounded 1.8% today and is approaching fresh highs as well, I consider all my bearish signals negated. The strength of today's move is further evident as both of these indexes closed near the high of the the days range, giving nothing back. The only rational thing to do is admit I am mistaken in believing the market is correcting, change my opinion, and look for opportunity on the long side.  

COMP

RUT

I didn't have much difficulty finding stocks I was interested in being in as I have continued to upkeep my watch list. The stocks that I choose today were LCI, PRLB, a low priced lotto RVLT, SAIA, and SMP.  My position size on these was slightly smaller than usual because I don't know if there is another nasty pitch waiting for me tomorrow or not.  I'll observe how these and the general market act over the next few days before committing myself further.  

LCI

PRLB

RVLT

SAIA

SMP