The Ps dipped on Tuesday but were able to recover to close back in the plus column. This action keeps them in the middle of their sideways range. Net net, they remain relatively unchanged for nearly a month. They also remain right around where they were back in May near the peak.
The Quack has been a little sideways too but it continues to look better than the Ps. It’s just shy of multi-year highs. I try to avoid the news but I did hear and see that there was some excitement in Apple. I’m not sure this in and of itself is going to drive a new bull market.
Bonds were a bummer. They broke down to new multi-year lows. As mentioned ad nauseam, I’m not as concerned about the absolute level of rates as I am the delta. Ideally, I’d like to see them stabilize.
Metals and Mining ran out of vigor. They begin to correct from their recent run up. This could turn out to be another buying opportunity soon but only if they set up and subsequently trigger. No need to be a hero here. Wait.
Although some tech followed the Quack, overall, things still remain mixed. Again, previously stronger areas like Retail, Biotech, and Banks (selected) have lost momentum.
Overall, with a just a modest up day, not much has changed: It remains stock pickers market. Unfortunately, the pickings remain slim. The good news is that the longer the market trades sideways, the bigger the next move will be. And, in the meantime, we could see a few shorts setting up in the previous high fliers and some longs in those areas coming off of major lows. So, I think if you pick your spots carefully, in the near future there could be some opportunities.
So what do we do? For the most part, we continue to wait. Again, with the market sideways be selective and make darn sure you really like a setup before taking it. And if you do decide to trade, make darn sure you wait for entries. As we’ve seen lately, this, in and of itself, can often keep you out of new trouble.
Futures are soft pre-market.
Best of luck with your trading today!
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