The bulls are working hard on the bounce attempt this morning but they don't have much energy. The market gapped up and has been slowly fading in the first hour of trading. Breadth is OK and most sectors are positive, but the buying isn't very aggressive.
Many market players, like me, are looking for a bounce but don't trust one to last long, which is keeping things contained. We need some higher highs intraday to trigger machine buying and bring in short-term money.
As I mentioned in Columnist Conversation, I'm playing Apple (AAPL) long. I just can't see efforts to hold this up into the end of the month given the big gains this quarter. It is starting to gain a little traction and that should draw in buyers.
Sarepta (SRPT) remains one of my top holdings. That is developing nicely going into data due Oct. 13. This is a very interesting story and I expect speculative bets to be placed as that date approaches.
I'm also long a little ProShares Ultra S&P 500 (SSO), but I'm keeping that very tight and I will look to flip it fast if the trade works.
After the recent weakness, not many stocks have had time to setup again. They may see oversold bounces but they aren't finding good support so I'm not inclined to build positions. This is a good time for flipping and skepticism.
