The Russell rebalancing blocks are crossing at the close today. Some stocks I'm watching are Global Blood Therapeutics (GBT) , which had a block of 1,138,800 cross, Applied Optoelectronics (AAOI) with a block of 230,200 and The Trade Desk (TTD) , which had 553,800.
Much of the action today was positioning for these transactions at the close so it is a mistake to find much meaning in the action. What was interesting was that the Dow Jones Industrial Average and S&P 500 lagged the Nasdaq and Russell 2000. That was probably due to the rebalancing, which impacts the latter two indices more.
Overall, the market had a very choppy week, with some big winners in biotechnology and technology while retail, oil and financials were the big losers.
Strength in bonds, such as the 20+ Year Treasury Bond (TLT) , is signally that there are plenty of worries about the economy, which is rather ironic considering we now have a more hawkish Fed. The last time there was that sort of disconnect, back in January 2016, the market underwent a rather sharp correction.
There is some good action in individual names and it's hard to be too negative given some of the speculative interest we saw today. However, the mix out there is of some concern. Next week's end to the second quarter may lead to some window dressing but seasonality remains weak and you have to wonder what the news flow might bring.
I have been increasingly cautious of late but the market's resilience is impressive. It is hard to be too negative until there is further deterioration in the indices.
Have a good evening. I'll see you on Monday.