Conditions were good for some sort of bounce Tuesday morning but so far there is little interest. While it probably would have been better if there was a gap-down open to entice some dip buyers, it is pretty obvious that the bulls are gun shy at this point. There are not trusting that this market has seen its lows, which is a definite change in character.
The FAANG names are a good illustration of how difficult dip buying has become. Facebook (FB) is down again and isn't far from testing recent lows. President Trump continues to beat up on Amazon (AMZN) and that spills over to the entirety of the Nasdaq 100 ETF (QQQ) .
I feel pretty well-positioned right now with a high level of cash and I am a potential buyer -- there just aren't good entry points at this point. It doesn't make sense to buy stocks simply because they are lower. There has to be some indication that a support level if being created.
I'm slowly expanding a list of stocks that I want buy as conditions improve. A few names are Casa Systems (CASA) , Sangamo Therapeutics (SGMO) , Clearside Biodmedical (CLSD) and Health Insurance Innovations (HIIQ) .
I have some smaller positions in most of these names, but I see no reason to add to them at this point. Market conditions simply don't support buying right now. When that changes I will be ready to move but it isn't looking like today will be the day to do much.
Facebook and Amazon are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells FB and AMZN? Learn more now.
