We have dueling data this morning, but hope to resolve the fiscal cliff continues to give the bulls the upper hand. The good jobs report is being picked apart by the bulls and the Michigan consumer sentiment numbers were a big miss, but breadth is positive and there continues to be underlying bids.
Big banks Citigroup (C) and Bank of America (BAC) are helping the tone, and bounces in precious metals and homebuilders are aiding the cause. The drama surrounding Apple (AAPL) has cooled off and it isn't much of a factor today, but some big-caps like Chipotle (CMG), Google (GOOG), Priceline (PCLN), Netflix (NFLX) and IBM (IBM) are acting well.
I have a lot of cash and an open mind about this market, but I'm still not able to put much money to work. I jumped back in U.S. Silica Holdings (SLCA) this morning, which is an old Stock of the Week. It has a new recommendation and a $19 target to serve as a catalyst, and the earnings numbers are impressive.
The other main trade I have right now is a recent initial public offering, Ruckus Wireless (RKUS), which did poorly after it priced but it has not regained its IPO price and is off the races. SouFun (SFUN) is one I'm watching closely and will look to add as it tests recent highs.
My biggest mistake lately is that my position size in my winners has been way too small. I'm sure as soon as I ramp it up I'll be whipsawed, but it is going to be the only way to put more cash to work. This market is not acting badly but it is quite challenging.