With yesterday’s closing weakness and this morning’s relatively weak opening, we thought an update wouldn’t be a bad idea since so many of our names this week are bullish.

As we noted in our webinar, things looked really good for stocks coming into yesterday morning. Things were acting quite well even during our webinar but weakness set in in the afternoon. Neither DHI or LEN, our 2 official bullish ideas, were able to trigger despite strong early performance and appearing as if they would certainly do so. This morning, both stocks are very weak so we dodged a bullet with our trigger levels not being tripped. When and until the market starts acting better, it’s probably NOT a good idea to seize upon most of the bullish mentions we published this week.

The markets are at least pausing here and doing so rather suddenly. It’s difficult to point to any one reason but citing the very volatile market nature we’ve experienced lately along with the complacency we sensed and discussed in our webinar are likely contributors to this nascent weakness. Things looked and were acting well, almost too well, and that’s why we raised the complacency issue several times. This is what can often happen during a volatile phase in the markets. The ebbs and flows can redirect quickly and often with little warning and reason. If the markets act better we can reconsider our bullish names and if they continue to experience weakness during the earnings season, that would truly be news and we’d be hunting down more bearish ideas to disseminate. Once again, we are reminded as to why waiting for good closing action can be a very important part of active trading.