Although the indices continue to hold above key technical levels this has not been an easy market to trade. The stocks that work one day are not working the next. There is no leadership and limited momentum. The end result is small moves that quickly reverse.
Yesterday we had strength in oil, retail and precious metals. All three of those groups are trading down today. If you had bought in anticipation of some follow-through, you are dealing with losses instead.
Strength today is in semiconductors, which were quite poor Tuesday but it is very typical of how the market has rotated of late. There also is some interest in shippers again but the uranium names have reversed. Breadth is running slightly positive but there are only 120 new highs as the constant rotation prevents strong breakouts.
All of this choppiness is taking place under the surface so if you just glance at the major indices, you won't see the obstacles that traders are facing. There are flat markets that can be very good for trading but this isn't one of them.
I took a few stops on oil-related names this morning but have very little of interest on my long-side setup list. Ichor Holdings (ICHR) is moving out to a new high but it trades very thinly. Sometimes the opportunities just aren't there and that is the situation for my style of trading today.