The dip-buyers jumped on the sell-the-news action, as it was just a bit too obvious. It now feels like the computers are kicking in and trying to run us a bit. However, breadth is poor at about 2,000 gainers to 3,000 decliners, and groups such as oil, gold, steel and retail are struggling. Biotechnology and technology are leading the charge.
Apple (AAPL) is attracting attention, which I suspect is due to market players looking for a liquid vehicle they can put some money to work into quickly. Other big-cap names such as Priceline.com (PCLN), Google (GOOG) and Amazon (AMZN) are up but not as energetic.
I'm playing some momentum names like Mellanox Technologies (MLNX) and SXC Health Solutions (SXCI) and continue to watch small biotechs such as Neptune Technologies and Bioresources (NEPT). My stock of the week is MModal (MODL), which is in the hot health care information sector, which is being led by Cerner (CERN) and SXC Health Solutions.
I'm not very optimistic that the upside will be sustained, but the trading action is OK, and there actually is some stock-picking for a change. How long that lasts is the issue.