There's a little follow-through this morning as the oversold bounce continues. Breadth is good at about 3500 gainers to 1500 decliners, but it is slow walk-up without a lot of energy.
This is exactly how these V-shaped bounces have tended to develop, and they cause a lot of frustration because the technical action doesn't produce very good entry points. You have to be willing to buy low-volume bounces into resistance to put cash to work and that is not an easy task if you respect the charts.
Apple (AAPL) is showing signs of leadership and some of the other big-cap momentum names are looking better. Homebuilders are bouncing on the housing data and banks are a bit better as JPMorgan Chase (JPM) finally manages to bounce.
While it is slow, it is definitely positive, and the longer it persists the more anxious folks will be to put idle cash to work. This is exactly the sort of bounce action that catches folks by surprise when it continues longer than they think it will.
I'm looking hard for new buys with limited success so far. I added to a position in VIVUS (VVUS) and I like Vertex (VRTX) in the biotechnology sector, but I'm going to stay selective and not rush in.
