The market's positive momentum is continuing with the Nasdaq 100 ETF (QQQ) now up eight days in row. However, there are some signs of slowing. The number of new 12-month highs is down a bit from Monday and the number of stocks with big percentage moves has shrunk. Breadth is still strong but slipping.
The S&P 500 has rolled over and is starting to fill the gap-up open as I write. There is no big rush for the exits but this market needs some rest and the action in individual stocks looks weaker on my screens. I've been a net seller and much more selective with my new buys.
There are a bunch of stocks pulling back that I want to buy on weakness. Tabula Rasa Healthcare (TRHC) , Health Insurance Innovations (HIIQ) and Casa Systems (CASA) are at the top of the list. I've already started buying some Clearside BioMedical (CLSD) and like the looks of Atomera (ATOM) .
My view of the market is colored primarily by the action I see in individual stocks. That is the price action that matters to me much more than the indices. The indices are not very good at providing buy and sell signals. It is the individual stocks that matter the most.
We need a pullback to reset some things and it looks like the market is starting to agree.