We have a slow and lumpy start to trading as market players struggle to get back on track. After the storm and a two-day shutdown, not too many folks are in tune with this action, so they are moving slowly and not doing anything too aggressive.
Breadth is positive, and the Dow and S&P 500 are in the green. However, the Nasdaq is under pressure again, primarily due to Apple (AAPL). Gold and silver are leading, but there is also some strength in regional banks and homebuilders. Oil, chipmakers and biotechnology are the laggards.
The problem this market encountered several times last week was that it opened at the highs and then drifted lower the rest of the day. Unfortunately it looks like that dynamic is playing out again Wednesday. There just isn't any reason to be building positions while the market is acting this way.
I have little going on but I did add to a position in Nam Tai Electronics (NTE), which is a Chinese contract manufacturer I've discussed before. The stock has been basing for more than two months now, and is trying to gain sufficient momentum for a breakout.
Other than that, I have few things of interest on my screens. In particular, I am keeping a close watch on the silver stocks, which have some constructive charts -- but, until the overall market acts better, it just won't pay to force the long trades.
