Gap Up and Sit

 | Sep 21, 2012 | 11:30 AM EDT  | Comments
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Stock quotes in this article:

cbm

,

FIO

We have one of those "gap up and sit" days so far, with the bears being caught by surprise once again and the bulls not willing to chase too much. Breadth is quite good at around 3,600 gainers to 1,450 decliners, but similar to on Wednesday, it is a bit choppy, with some quick moves in groups such as precious metals. Small banks are attracting attention, and the big-cap momentum names are generally strong.

I'm trying to follow my own advice and am ignoring the market timing and staying focused on individual stock picks. Unfortunately, I'm not finding much new to buy at the moment. Cambrex (CBM) is of interest as it tries to come out of a base on good volume, and Fusion-io (FIO) is on my radar as that challenges recent highs. Other than that, I'm not finding much new to add.

To me, market health is largely a function of whether I'm finding new stocks to buy. When I'm not finding good entries, then I don't consider it good action, even if my existing holdings are up big. In my mind, a good market is one that allows for aggressive buying. This action today isn't bad, but I'm not finding the sort of buying opportunities that I'd like.

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