We had a momentary hesitation, but the buyers are back on track and pushing the indices higher. Breadth is slightly negative as precious metals and biotechnology are under some pressure. Higher bond yields are mainly hurting the metals, but we have to watch to see if it spreads.
Trading the market is like walking the high wire. We are elevated, and there is danger because of that, but there is nothing to indicate that a major fall is about to occur. We might wobble, but there is no reason we can't continue to keep moving along.
I try not to pay too much attention to the indices, instead I focus on individual stocks that are attracting attention. Number one on my radar this morning is data storage company Fusion-io (FIO), which is my stock of the week. It has been a momentum favorite and is taking out recent highs on good early volume. That should suck in some hot money looking for action. It is a fast mover and makes for good day trading if you are so inclined.
Another one I'm trading is biopharma name VIVUS (VVUS), which has pulled back on light volume for a couple weeks and appears to be finding support around $20. I'm watching for a higher high and increased volume.
I'm not going to waste time trying to time the overall market. There is money to be made trading individual stocks and that is going to be my focus.
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