After 10-year bonds hit their highest yields yesterday they have reversed a bit and provided some relief to equities. One of the reasons bonds are acting better is because they are gaining some traction as a safe haven as the North Korean nuclear deal isn't looking quite as promising.
The indices are still close to even and the movement this morning isn't meaningful but there is some relief that interest rates are not causing a further rush for the exits. Technical support is still in place but the buying appetite is not very robust despite good breadth. Small caps are leading which is a good sign for speculative traders.
I don't see any reason to press a timing bet on the indices right now although I am leaning toward more downside. If we test yesterday's lows again, I'll be looking to add to index shorts. So far the bounce off those lows is not too impressive.
While I'm waiting for some index excitement I'm focused on trades in individual stocks. There are a number of small speculative names that are on my radar such as Enphase Energy (ENPH) , ChemoCentryx (CCXI) , Iovance (IOVA) and Aeglea BioTherapeutics (AGLE) .
This is not a market that is offering many opportunities for big aggressive trades but there is some speculation in the small stocks that is working. The big index trade is still developing but timing it right is always the key.