Traders Are Focused on the Big-Caps

 | Apr 06, 2017 | 10:38 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:










Many things have changed about the market since the Great Recession of 2008-2009, but one thing that sticks out when the market has a poor day like yesterday is the lack of emotion. In the old days, that sort of action would stir up some fear and might even create a gap down open as folks worried that it was the start of a significant market reversal.

In recent years, that seldom happens. Instead of fear, the dip buyers can hardly wait to jump in. Traders are always hoping for a gap-down open to buy, but the dip buyers don't allow that to happen. They are so anxious to buy weakness at the open that they don't let it occur.

That sort of action makes for much more difficult entry points. Buying a flat open after a bad day just doesn't provide very good odds. Without stronger emotions, we don't have as many trade opportunities.

In the early going today, the indices are holding steady and breadth is about even. There is some strength in oil that is helping a few things, but traders are focused on the high-beta, big-cap names that were the main driving force recently. If names like Action Alerts PLUS holding Apple (AAPL) and Amazon (AMZN) lose momentum, that will cause a major change in market character.

There are a few biotechnology names, like Akari Therapeutics (AKTX) and FibroGen (FGEN) , that are moving, but not much going on with themes. Bulk shipper Star Bulk Carriers (SBLK) is on my radar, but not much else at the moment.

Technicians will watch to see if the indices start making lower lows. The refusal to gap down at the open was probably a short-term negative. We aren't going to bounce very well when there isn't any fear.

Columnist Conversations

today is a good day to lighten the load and take some positions off the table. SOLD WB OCT 85 CALL AT 11 (i...
I reached out last week to my close friend Ken Shreve, who is a prominent writer for the IBD.  I asked Ke...
I reached out last week to my close friend Ken Shreve, who is a prominent writer for the IBD.  I asked Ke...
View Chart »  View in New Window »



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.