After a couple of days of consolidation, buyers are active again. Underlying support has been clear as the market has bounced back and closed well after early selling. This morning, the buyers didn't wait for a dip before jumping in. One of the toughest things for many traders the last few years is that uptrends don't often have much pullback. If you aren't fast, you don't have much chance to load up.
Breadth is solid and approaching 2 to 1 positive. Homebuilders and regional banks are leading, and there's speculative interest in the solar energy group again. Solar has been a go-to group for aggressive traders lately, and we have leadership from JA Solar (JASO), JinkoSolar (JKS) and Canadian Solar (CSIQ), among others.
I've been mostly a seller this morning, not because I'm negative on the market but because my trading approach is to take gains into strength at this point. I've cut back a few things but I am still looking for new buys. So far, I don't see anything I'm in a rush to buy. I am tempted to bottom-fish Apple (AAPL) for a bounce, but I won't do much until it shows some green.
It's been a good run and I am going to keep it tight and try not to give back gains. If I can find new buys I like, however, I won't hesitate to take them.
I'm a bit concerned that the market may not be thrilled with Jack Lew being named Treasury Secretary but, so far, there isn't too much reaction.