Selling Into Strength


“Although the overall market is up, I’m seeing a balance of buyers and sellers.  There are people taking advantage of the ‘up’ market to do some profit taking.”

Joe Ranieri (subscription required), Co-Head of Trading, Canaccord Adams

The Dow was up more than 100 points at the start of the day.  Currently (1:45pm EST), it’s down about 40 points (chart).

What we are seeing, I believe, is profit taking i.e. selling into the strength.  A lot of people are using this up market, yesterday and today, as an opportunity to get out of stocks at reasonable prices.

Like I said yesterday, “we’re not out of the woods yet” and markets are still jittery.  After dipping below 20 this morning, the VIX is back up near 22.

I would not be at all surprised to see the selling accelerate in the last hour, especially as it’s the last day of the month.

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