RESISTANCE?

The market has basically hit the resistance area I've talked about for the last couple of months. We could see a reversal at any time. There have been a lot of conflicting signals in the market over the last few weeks. It's been my experience over the years that conflicting signals are often a result of market manipulation or other internal activity. When I use the term market manipulation here, I'm talking about internal buying and selling activity...not necessarily illegal activity. The stock market is a game. The professionals will often make it look like they are buying when they are secretly selling or dumping stocks (and vice versa). Alcoa is a good example. All I've heard over the last 24 hours is how good those earnings were. Yet when you look at the price action of the stock today, it looked like some heavy selling was taking place. Google is selling off. Apple is looking weak despite making a new all time high. AMZN is broken. IBM and Google both have sold off after breaking out to new significant highs. Will CAT follow this same pattern? I think it will...at least that would be the recent pattern. LULU traded very bearish (for the day) after gapping up big at the open. ....but the market goes higher.

If this is an attempt to prop the market up a bit longer, it probably won't last. I don't have a high probability trade yet, but we'll see what happens over the next few days. It's tough to be patient, but you're trading account will thank you later.