Are We On The Verge Of Stocks Pullback? –
SectorFinancial Markets
CountryMiddle east

Is still consolidating Monday's sharp gains. Yet, it seems that eking out further gains is getting harder as the price action took the index quite far from its key moving averages. If I had to pick one sign of stiffer headwinds ahead, it would be the tech sector's reaction to another daily retreat in Treasury yields. The sector didn't rally, and neither did the .

Value stocks saved the day, and it appears we're about to see them start doing better again, relatively speaking. Yes, the risk-reward ratio for the bulls is at unsavory levels in the short run. What about being short at this moment then? It all depends upon the trading style, risk tolerance and time horizon. I'm not looking for stocks making a major top here as the bull run is intact. My prognosis for yesterday's session materialized, and we have seen quite a record number (around 95%) of stocks trading above their 200-day moving averages, which is similar to the setup right after the post-dotcom bubble bear market 2002/3 lows, or 1-2 years after the bull market run off the March 2009 lows. Hard to say which one is more hated, but I see the run from more...