The announcement that Warren Buffett has increased his stake in Action Alerts PLUS holding Apple (AAPL) by 45% is doing more for this market than Apple's earnings report on Tuesday night. Apple is hitting new all-time highs and that is pushing up the Nasdaq 1.2%. You can see the positive sympathy this creates in the broader market as the Russell 2000 ETF (IWM) is up 0.8% and breadth is approaching 2 to 1 positive.
While this is a nice boost after the big swing yesterday it still doesn't do much to shift the negative technical pattern. It is going to take more than a couple days of good action to overcome overhead and put the market back into a solid uptrend.
What is most notable is how quickly market players were to shrug off the initial negative response to the employment news and to forget about the China trade negotiations. There is a substantial likelihood that the China trade negotiations are going to be a market mover on Monday morning. Right now market players aren't too concerned about that risk but we should see some positioning late in the day in anticipation of a new event.
Finding good setups in individual stocks is still challenging as there simply isn't a lot of strong momentum. My Stock of the Week, Cheniere Energy (LNG) busted out of a nice looking cup-and-handle pattern on earnings and long-time favorite Sarepta Therapeutics (SRPT) moved higher on earnings even though European authorities failed to support one of its drug candidates. I reduced both position into the strength but may remount as they develop from here.
I have added to a position in SailPoint Technologies (SAIL) which is working on a very nice consolidation near highs and am eyeing a few other names like 58.com (WUBA) and Arena Pharmaceuticals (ARNA) .
My trust level in the overall market is low but we have some positive action today and that is a good opportunity for some moves.