The traders waiting for the 'sell Donald Trump' trade to kick-in are still waiting. It is a surprisingly complacent open, with little movement so far. Many active traders have been hoping for more volatility -- but so far it is not happening.
The FANG names are doing most of the heavy lifting so far. Breadth is running just a little on the positive side, with about 3,200 gainers to 2,900 losers. We have about 150 new 12-month highs, but no real notable sector leadership.
The biggest challenge of the market lately has been dealing with rotation and a lack of sustained energy. There will be a day or two of strength in certain sectors, but it will fizzle out and not produce any real follow-through. It has been tough to find themes that we can stick with, although there is no shortage of articles about so-called 'Trump' stocks.
My scans of market action are unimpressive -- and I see little to buy at this point. In fact I'm selling down some winners, like Teekay (TK) , Ultra Clean (UCTT) , 8x8 (EGHT) and Sanchez Energy (SN) . Technically, these stocks are still holding well, but I like the idea of booking some gains at this juncture and waiting for better entries to develop.
Sooner or later, we are going to see a bout of selling that will be attributed to Donald Trump. I suspect it will be sooner rather than later, and I don't expect it to mark a major turning point, but I'm happy to reduce my inventory a bit and see how things develop.
The S&P 500 is hitting the lows of the day as I write and upside momentum remains tepid.