I didn’t really like Wednesday’s action in the stock market. Didn’t “feel” like there was a lot of support left for dip buyers, so I expect dip buyers are going to be punished very soon. It’s hard to be bearish — actually its low probability to bearish— at all time highs. So let’s call it very cautious. Eventually the tech sector is going to pullback, and if by chance earnings aren’t living up to the price gains achieved coming into earnings, then watch out.

No One Will Tell You This Key Factor In Spotting Trends But if you grab the free little black book, you can tap into the secret. Click here to download

It’s a risky proposition either way up here. Fortunately our job as traders is not actually to figure everything out all the time and trade, our job is actually to wait till we see something we recognize that has high probability and reasonable risk, and then trade. In essence we are “waiters”, not “traders”.  There have been recessionary hints in non tech earnings notably 3M.  That should be good for lower rates and hence good for TLT which I remain long.