Once again we have soft action following a gap-up open. If the pattern holds we should see some dip-buying as we pull back, but typically we are unable to gain much momentum intraday. If you weren't in for the open, it becomes extremely challenging to find entries. It isn't that breadth is poor, but that we don't have intraday momentum.
Breadth is approaching 3-to-1 positive and all major sectors are green except for natural gas (once again). Gold and retailers are the standouts but there is still no clear leadership. Citigroup (C) is obviously a drag but overall financials are handling it pretty well.
I flipped a few things on the open and am trying to put some new money to work, but with little success so far. KKR (KKR) is my stock of the week, and that is looking pretty good. Coffee Holding (JVA), which I mentioned last week, is percolating and may attract some attention, and InvenSense (INVN) is obviously on the hot-money radar -- but most of the small-caps I'm watching like VirnetX (VHC) and Magnum Hunter (MHR) are not gaining traction.
We continue to fade as I write and I'm going to keep a tight rein on positions. I'm itching to be more aggressive with some longs but I'm just not seeing much energy.
