So far, it is doom and gloom out there. There is no sign of Monday morning dip-buyers and breadth is running 666 advancers to 4,400 decliners as the market hits the lows of the day. Typically, a gap down open on Monday will attract some dip-buying efforts, but so far, the bulls are standing aside and doing nothing.
All major sectors are red, with gold and oil leading to the downside. There is no place to hide as stocks are moving in lockstep once again.
Individual stock picking isn't yielding much but I do have my eye on a few things that I think will pop back when the selling pressure relents. Majesco Entertainment (COOL) should see some sympathy on the Zynga IPO later this week. Invensense (INVN) was a hot IPO and should see some initial coverage in the next couple weeks from underwriters, including Goldman Sachs. Royale Energy (ROYL) is a small oil company that has been attracting attention recently. Silicon Motion Technology (SIMO) and C&J Energy Services (CJES) remain favorites.
So I have some names on my shopping list but there is no reason to be aggressive until the action improves. We need some buyers to show some conviction or all we will have is some quick flips for a few pennies. Right now, there is no sign of the bulls.
