Despite the market ending pretty much at the lows of the day, the market action today was just what the doctor ordered for the bulls. There are two ways the market can work off overbought conditions - (a) sharp pullback (b) a period of low volume consolidation or sideways movement. And a few more days of the latter can just be good news for the bulls. That said, I still believe that caution is warranted here. The market is still a tad overextended and the S&P right at resistance level of 1331-1332. Even a pullback to MA(50) i.e. 1308 would be healthy for the bulls.
Staying true to the strategy I have been underlining in the past few days, I ended the day with a 70% cash position and positions in HERO and MCZ. Both these setups were from the watchlist I had put up last night. It was a good day for the watchlist with MCZ up over 15%, HERO and WTW up over 4.5% and GRS up almost 3.5%. Hope some of you readers benefited from some of these calls!
Take care and good luck!