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The dip-buyers did a nice job of buying the early weakness, but the issue now is whether they will flip quick profits and kill the move. Breadth has improved to about 2-to-1 negative, but the buyers aren't rushing to take advantage of the weakness. And there are signs that defensiveness and profit-taking are accelerating. The dippers liked the obvious bounce trade, but they look like flippers and aren't very interested in sticking around.
I've made a number of defensive moves, taken some stops and lightened up on several positions. There are a number of stocks I'd like to buy at lower prices, like Cirrus CRUS , Sarepta SRPT and Performant PFMT , but I'm going to be patient. My goal isn't to buy them at the exact bottom but to buy them when they have the best chance of a sustained move higher.
A weak close today is going to stir up concerns, but strong underlying support has been a theme of this market for some time. While today doesn't look positive, it is just a minor hiccup within the bigger picture. No major support has been breached and the trend is still to the upside.
Nonetheless, protecting gains and playing a little defense is a good way to keep your portfolio near its highs, which should always be a primary goal.