We have very choppy action as market players digest the latest news out of Europe. We were a bit extended and ready for profit taking, but we continue to have plenty of underinvested bulls looking to buy dips.
Breadth is poor, especially on the NYSE, which is running 770 gainers to 2000 losers. The only sectors in the green are retail and chips, while oil, gold and banks act poorly.
On the other hand, we have good action in big-cap momentum names like Priceline (PCLN), Google (GOOG), Salesforce (CRM), Intuitive Surgical (ISRG) and Amazon (AMZN). International Business Machines (IBM) is up on news of Warren Buffett's buy, but I'm surprised it isn't doing better.
The action in the big-cap momentum names is probably a function of money managers looking for performance. They are moving into the more liquid, high-beta names, which is an indication that maybe we are finally starting to see more of a focus on stock picking as European issues move to the sidelines.
I have a few trades going but nothing aggressive. My stock of the week, Flotek (FTK), is acting well, and Cheniere Energy (LNG) is finally bouncing back on rumors. I have a number of names on my shopping list, but many need time to setup better after the jump Thursday and Friday.
I'm maintaining a bullish bias, but I'm going to be selective with new entries.