Market participants apparently celebrated the DJIA record high too much and feel hung-over today. It is very slow going but, so far, the downside action has been well contained. Breadth is just slightly positive and there's leadership in biotechnology, precious metals and solar energy. Oil and retail are laggards.
The market has had a very good move since the meltdown a week ago Monday and deserves a rest. I'm certainly going to give it a little room to consolidate and hopefully that will help produce better setups. We just need a little patience as we digest the recent action.
One small-cap I added this morning is Meru Networks (MERU), a maker of wireless networking products. It has had two big surges in the last couple of weeks, one on a secondary offering announcement, and the stock is attracting momentum money that likes low-priced names. Shares are up nearly 15% this afternoon to $5.05.
A sector that is seeing interest today is shippers. StealthGas (GASS) has been my favorite as it is linked to liquid natural gas, but I like a number of dry-bulk names, such as FreeSeas (FREE), Safe Bulkers (SB), Seanergy Maritime Holdings (SHIP), Excel Maritime Carriers (EXM) and Eagle Bulk Shipping (EGLE). I haven't taken any of these names but I'll be looking at them near the close.
