The market is stabilizing after the first bounce attempt was quickly sold. Breadth is extremely poor with just 350 stocks in positive territory, but extreme breadth has been the tendency lately. Gold is the only sector in the green, while oil and financials are leading to the downside.
The million-dollar question is how fast do we bounce back. We know we will have another Europe-is-saved rally sooner or later, but it doesn't look like there is any immediate news on the horizon. Without some sort of rumor to prop us up, we can easily roll over again, especially after the European markets close.
I've been struggling with being underinvested lately, which is actually helpful this morning. I'm inclined to nibble at favorites like Web.com (WWWW), Flotek (FTK), C&J Energy Services (CJES) and Magnum Hunter Resources (MHR) on weakness, but I'm in no big hurry. Procera Networks (PKT) was a new Shark technical buy this morning, and I'm trading it aggressively.
There is a good chance that the early lows will not hold, so I'm taking my time and staying selective. I am optimistic about the opportunities that are setting up, but timing is always the key.
