Market Presents Traders With 2 Big Challenges

 | Sep 12, 2017 | 1:25 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:






The indices, with the exception of the Nasdaq-100 ETF (QQQ) , are lingering around the highs of the day, but this market action is deceptively difficult to trade. This is not a market where you can just throw money at the action and feel confident that the momentum will bail you out.

Breadth is very good at around 4,200 gainers to 2,400 decliners and there are over 600 stocks hitting new 12-month highs today, but what is leading today is different than what was leading yesterday. Yesterday some of the semiconductors, biotechnology and big-cap names were leading. Today it's more financials and a smattering of other things, such as China-related stocks and oil services.

Traders have been presented with two major challenges. First, most of the gains have come overnight. If you weren't long already, there wasn't much of an opportunity to add exposure. A secondary problem is that many stocks are extended and entry points are problematic. Most of my favorite names like The Trade Desk (TTD) or Extreme Networks (EXTR) don't offer ideal entries at this point. Either they need to consolidate or pull back before it makes sense to be more aggressive.

Rotational action, big morning gaps and technically extended charts are the obstacles that the bulls face here. That isn't nearly as difficult as the directional obstacle the bears are facing, but it isn't as easy as it looks when you see the S&P 500 up 1.38% since Friday's close.

Columnist Conversations

Equity futures were up slightly just before 9:30 PM Sunday night.
Spent a good amount of time with PayPal CEO Dan Schulman this week...and came away fully understanding why thi...
Has quietly taken a mini beating over the past few weeks. Might be worth a look on Monday given everything tha...



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.