Trading is extremely slow but the market continues to hold up well, with breadth running 3,760 to 1,600. Google (GOOG) is off its highs but the bears seem unable to get anything going intraday. High-beta, big-caps names such as Apple (AAPL), Amazon (AMZN), GOOG, IBM (IBM) and Baidu (BIDU) are leading.
I'm optimistic about further upside but the big challenge is finding good entriy points as we are seeing a low-volume, straight-up move with no consolidation.
Take a look at SPDR S&P 500 (SPY) for example. The late, intraday reversal on Oct. 4 had a good surge but the market has been running up on mediocre volume since then. It is now sitting right under the highs it hit in August and September, but there isn't a good foundation.
A couple days of flattish action would fix that, but the tendency of this market is to move sooner than you might think. In view of how often we have seen these V-shaped moves it isn't too surprising that buyers jump in quickly and never really allow the technical patterns to more fully form.
I'm adding to a position in Pharmacyclics (PCYC), which is close to breaking through the $13 level, but I'm watching closely and biding my time on most of the names on my watch list.