It is slow going out there, as the May Day holiday around the world thins the ranks of traders. The celebration of the budget deal was short-lived, as the traders decided that they should just buy the high-bet, big-cap, FANG-type names such as Amazon (AMZN) , Action Alerts PLUS charity portfolio name Alphabet (GOOG) L, Tesla (TSLA) , Apple (AAPL) and Facebook (FB) .
This is a continuation of the theme on Friday, when good news from some key big caps failed to provide leadership. This is worrisome when money is rotating into a small number of highly liquid names that allow big money managers to be more flexible.
I said on Friday that the inability of the market to rally better on the very good earnings news from Amazon and Alphabet worried me. The action this morning further confirms my concerns. We are being held aloft by a very narrow number of stocks, while the more speculative issues are being dumped.
The indices have yet to suffer any major technical damage, but the action under the surface continues to produce warnings. I'm still short some small-cap ETF indices and will look to add.