We have a lackluster start to a big week of earnings and news. The indices managed a positive open but there has been a steady drip of selling and there isn't any standout positive action. Apple (AAPL) managed a very weak bounce after being clobbered last week and the chip sector (SMH) is struggling to stay positive. Alphabet (GOOG) , which reports tonight, is down which is a good illustration of the poor sentiment in this market right now.
I commented in Columnist Conversation that this is a time for highly selective stock picking. The action so far this morning certainly confirms that thinking. There just aren't any good entry points at the moment. They may develop but there is no reason to buy prematurely.
One thing many market players fail to understand and embrace is that the idea isn't to buy a stock at the lowest possible point but to buy it when it has the best chance of making sustained gains. Tying up capital when there isn't any positive momentum is not going to help you much. You have to wait until there is some potential for follow through which will produce meaningful gains.
At the moment there is isn't any positive momentum so if you buy anything you better be ready to sit and wait. There is no reason to believe that the market is suddenly going to turn and go straight up from here.
As long as you have capital, you have potential opportunity. Don't squander it by trying to force trades in a market that is offering very little.
I've made a couple sales but haven't bought a thing so far today.