The bulls are working hard to bounce this market but it's a lackluster effort so far. The DJIA is leading but, as is typical, it fails to reflect what is really going on in the market. Acton Alerts PLUS holding Facebook (FB) continues to pressure the Nasdaq but small caps are not terrible. Breadth is running around 3600 gainers to 2700 decliners but there are twice as many new 12-month lows compared to new highs
What is most notable on my screen is that I only have a very small number of stocks making 10% moves today. There just aren't any pockets of strong momentum right now.
One stock that is making a big move today is Arena Pharmaceuticals (ARNA) . I believe this one can run up quite a bit more and I want to build a position. I made a very small buy pre-market and now will continue to look for entry points. A key issue here is that it could announce a secondary, so I want to make sure I am ready to add to the position should it sell down on such news.
Another name I'm watching for entry points is Twitter (TWTR) which is suffering on fallout from the Facebook privacy issues but the story changed there recently and that should be the driving force. The big concern for all the social media plays now is governmental regulation and that is not going to be clarified soon. I have a small position in TWTR now and will be watching to see what happens down to $30 support.
Overall there isn't much life in the stocks I'm watching so there is no rush to deploy capital. I like the way some things are developing, like my stock of the week, Baozun (BZUN) and Denali Therapeutics (DNLI) but the overall market action is preventing aggressive buying.
