Tug Of War

After Monday’s sharp rally, a pullback would have been in order yesterday but, as we’ve seen so many times in the past 6 months, a mid-day sell-off was rebuffed by last hour buying.

It was a tug-of-war between 2 news items, as the indexes initially were dragged down by a report that pending home sales fell 16% in November, far worse than the expected 2% decline.

Offsetting this piece of bad news were encouraging auto sales and a report that factory orders had risen more in November than analysts had anticipated.

All in all, it turned out not to be not a bad day given the previous run up. We are holding all positions subject to our sell stops, and I am making some portfolio adjustments to stay aligned with market direction.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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