If there have been any doubts about whether the character of the market has shifted recently, we had further proof of that shift this morning. The gap-up open quickly faded, and there is no buying traction at all, so far. This is not a market that is causing any concern about being left behind. In fact, I can't recall the last time I've heard so many traders say that they are looking to sell into strength.
Breadth is running about 3600 to 2900 positive, which is an improvement -- but not very impressive for an oversold bounce after such a pounding. We only have about 300 new lows, which is mostly due to a bit of a bounce in oil and commodity plays, but we obviously have very little that is close to highs.
Last week, I discussed the fact that this is the opposite of a stock picker's market. If you want to do something a little aggressive, you have little choice but to stick with some index plays or a few of the large-caps. In fact, all of the FATMAN names are trading in positive territory, right now, despite the lackluster breadth. That tells us that the focus is on some fast trades for a quick bounce. There is very little interest in building longer-term positions or position trades.
The indices seem to have found support, and may make another push, but there isn't much energy. Perhaps the contrarians will view the reluctance to more-fully embrace this bounce as a positive, but that is not an easy basis for a trade.
My Stock of the Week, Pacific Biosciences of California(PACB), started off slowly but has found some support. I have very little of interest on my screens, right now, and am biding my time.