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Random Thoughts

As I preach, you can’t take the action in the indices at face value. You have to dig a little deeper. Each day I cull through roughly 2,000 stocks, 250 sectors, several dozen ETFs, and then finally, a handful of indices.

The Ps closed at all-time highs.

The Nasdaq closed at multi-year highs.

In spite of these new highs, the market just felt a little soft internally. It seemed like the average stock ended lower. I guess this is no big shocker when you look at the broad based Rusty. It actually ended down a smidge on Monday.

Again, I’m not complaining. Things just seemed a little mixed. Friday’s pop, so far, appears to be one and done.

As usual, take things one day at a time. Ideally, I’d like to see the market, sectors, and stocks break out and not look back for a while.

Getting back to the mixed thing….

Regional Banks stalled out in their rally from pullbacks.

Retail hasn’t changed my on a net net basis in nearly a month.

Chemicals, The Semis, and Internet have been sideways intermediate-term but they are hanging out towards the top of their ranges.

Drugs stalled a bit after approaching their recent highs. And, the Biotech sub-sector here reversed at its old highs.

Most areas still remain in uptrends like the indices but again, it’s getting a little mixed.

So what do we do? To recap, last week things were getting mixed then we had the mother of all up days on Friday. Then, on Monday, we go back to being mixed. Again, overall things remain constructive, it’s just getting a little mixed (have I mentioned that yet?). At these levels, a few big up days would make all the difference in the world. Until then, when it comes to this market, I’m from Missouri. Show me. The database is still not producing many meaningful setups anyway. As mentioned recently, this might be it suggesting to let things shake out a bit. Again, don’t worry. If we end up in a bona fide new bull trend, there will be plenty enough time to add new positions. In the meantime, wait for follow through.

Futures are soft pre-market.

Best of luck with your trading today!

Dave

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