We are getting a taste of what happens when the dip-buyers lose interest. They made one brief try after the weak open, but they were quickly turned back and the selling picked up as we took out the early low. Slightly weak housing numbers and volatility in crude oil are creating headwinds.
Breadth is around 2-to-1 negative, with precious metals leading as they finally bounce. Retail, chips, biotech and drugs are weak.
The selling seems to be more a product of disinterest than a rush for the exits. Without the dip-buyers anxiously jumping on minor downticks, there is less anxiety among underinvested bulls looking for entry points.
I'm underinvested and looking for entry points myself, but I'm not seeing any notable pockets of action. Glu Mobile (GLUU), which I mentioned Wednesday, is the best action on my screen. I see some charts I like, such as VIVUS (VVUS), Velti (VELT) and InvenSense (INVN), but I want to see buyers step up before I add anything.
One group I'm watching is silver. There were some good trades at the end of February, but the group has gone straight down since. The charts are ugly, but there are signs of bottoming. One of particular interest is First Majestic Silver (AG), which has silver properties primarily in Mexico. It is supposed to earn $1.41 per share this year and grow that 52% to $2.15 in 2013, yet it trades with a trailing price-to-earnings ratio of just 15. If silver starts to improve, AG is my go-to name.
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