Markets are exhibiting some sleepy bounce action to start the day with the bulls struggling to regain the momentum they lost Tuesday. Breadth is running about 3,700 to 2,625 positive but there aren't many pockets of unusual strength.
The good news for the bulls is that bears are still incapable of building sustained downside momentum. Despite the poor close yesterday there was no concern about escaping the market this morning. The only way the bears seem to be able to do much is when there are algorithms unraveling.
Overall this is healthy action for stocks. We need some mild action and consolidation following the sizable V-shaped bounce. There aren't that many big pullbacks but sometimes simply doing nothing serves as a better way to work off overbought conditions.
I continue to sit on high cash levels and am making smaller incremental moves. I reduced some Casa Systems (CASA) , my stock of the week, into strength but it continues to act very well. I'll be looking to trade around that core position as it develops.
I added back to a position in Cara Therapeutics (CARA) , which offered a good trade recently. It has support and now needs a close over the $14.50 area to get going.
HTG Molecular Diagnostics (HTGM) has been a great position for us at SharkInvesting.com and I'm adding it back today as it seems to have found support around the $4.50 level.
I'm not too trusting of the overall market and I don't see any really compelling buys right now so it's a good time to be patient. It is very easy to force trades in this sort of environment as the fear of missing out is still quite strong.
Tune in a 1 p.m. ET on Wednesday, Feb. 28, for a free one-hour webinar on how to invest in bitcoin and other cryptocurrencies. TheStreet's Scott Gamm will host noted cryptocurrency commentator James Altucher, Reality Shares CEO Eric Ervin, attorney and cryptocurrency expert Kathleen Moriarty and Bruderman Brothers Chief Market Strategist Oliver Pursche. Click here for details and to register.