We are seeing gap-and-fade action in the market this morning because the bulls have been unable to build on the German court decision regarding eurozone bailouts. It seems as if there's a constant flow of sell-the-news events, but the worst that ever happens is a mild fade, like we are seeing this morning. The market is still solidly in the green and breadth is positive, but well off the early highs.
Homebuilders are leading again, and oil and banks are doing well, but technology is mixed as Apple (AAPL) drifts around ahead of its new product announcement today. Google (GOOG) continues to pull back but Facebook (FB), AIG (AIG) and LinkedIn (LNKD) are holding their gaps.
I've been a net seller this morning. I locked in gains on a number of stocks such as AIG and Qihoo 360 (QIHU) and I have not done any notable buying.
The market is closer to filling the early gap as I write, and I'm looking for it to be mixed until the Fed announcement tomorrow. I'm digging for new trades but not seeing many.