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John Carter Analysis: Buy the Dip Until it Stops Working

The weekly charts of stock indexes still act great in this "easy money" environment.

The weekly charts of stock indexes still act great in this "easy money" environment. I'd love to buy a pullback, but they've been few and far between as buyers continue to trade aggressively. There are some bearish opportunities out there, but they're not in the indexes. They're in stocks that in and of themselves are falling apart. BABA is a good example of that and I'll remain short here for the foreseeable future, or until the trend changes. There's plenty of the inverse of this pattern and ULTA is one I'll do the exact opposite. Buy the dip until it stops working. A few of our recent picks saw a pullback with the overall market. I've still got orders working in LLTC and I'd love to buy HD again if we did in fact see a sell off. Debit spreads are a very forgiving strategy to use in this type of market and while there's some trepidation around Friday's employment numbers, the dollar is still a screaming buy. If the report did bring a selloff to the currency I'd be first in line to start picking it back up.

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