Summer Trading at Its Finest

There's a transition back to stock-picking as macro matters diminish.
Stocks quotes in this article: WB, ACIA, TSRO, YRD, TZA

The indices are acting poorly today but the main message of the market is that a lot of folks decided to take time off. We were due for a pullback, but the high level of disinterest is making it easier for the bears.

Breadth is running around 3-to-1 negative but a fair number of stocks are making new highs as the run in precious metals and mining continues. A number of stocks are holding up as we transition back to stock-picking and as macro matters diminish.

The FANG (FB, AMZN, TSLA, NFLX, GOOGL) stocks are all acting poorly and there are pullbacks in biotechnology, but a few odds and ends are bucking the trend. I have Weibo (WB), Acacia Communications (ACIA), Tesaro (TSRO) and my Stock of the Week, Yirendai (YRD), on my radar.

I'm still in the Direxion Daily Small Cap Bear 3X ETF (TZA) from last week and will look to press that as things develop. The disinterest is a concern for the broader market but the action in individual stocks is preventing it from being too dreary. This is summer trading at its finest and we had better get used to it.

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At the time of publication, Rev Shark was long WB, ACIA, TSRO, YRD and TZA, although positions may change at any time.

TAGS: Investing | U.S. Equity

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