Choppy Can Be Healthy

 | Aug 27, 2012 | 10:50 AM EDT  | Comments
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Strength in Apple (AAPL) and some oil-related names are holding us up, but it is very choppy action and we are definitely lacking energy.

There just aren't many interesting pockets of momentum at the moment. Too many stocks have become technically extended and there isn't enough volume to create momentum.

At this juncture, this sort of choppy action is probably the healthiest thing we can do. We need some consolidation and if we hold steady going into the Jackson Hole conference on Friday, we'll be in good shape for another leg up.

It is very easy to understand the bears' arguments against this market right now, but the price action continues to be generally positive. The bears are not gaining any traction and I have no interest in trying to anticipate greater downside pressure.

I sold down some Serapta (SRPT) on a Barrons' article over weekend and I'm digging, but finding little new to add right now. I continue to like the Nanosphere (NSPH) chart quite a bit, but like so many other stocks it just isn't attracting attention right now.

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