"Bee, we might not need dee-vine intervention to lift this dog. The short int. in HL has AGAIN increased. Lift off might depend on 2 thing's short term. How nervous are these short's if we don't see any taper action today ? Will they stampede to cover ? Frankly I think the only thing recently holding this pup up has been short covering IMO, probably mitigating the tax loss selling this month to some degree. I don't sense a lot of new position buying.
Bottom line-A 1-2 mo.taper delay, if we see it, might give us a trading pop on short covering but in the macro picture I think we need something a little more substantial in the fundamental picture to sustain a rally here. Personally I would like to see a taper, accompanied by a substantial & fast drop in the PM's --a capitulation stage. A nice washout on volume. You can blame the FRB buddy, for the confusion & general lack of confidence in all these market's. Then of course add in O'bummer & congress. Chasing from one crisis to another with NO longer term strategy in place. My own take, don't CHASE anything right now, especially if one already has exposure, LET THE STOCK COME TO YOU ! Where you have a decent conviction level. Carry on you old barnacle.