The S&P 500 managed to hit a new all-time high this morning. The indices are holding onto gains, and breadth is solid -- at nearly three-to-one positive -- but it feels like a sleepy summer morning without a lot of energy. Plenty of stocks are acting well, but it seems that is primarily index driven, rather than individual stock-picking interest.
It is understandable that after the move we've had off the Brexit lows, there is some hesitancy to keep chasing. Entry points are becoming quite difficult. A number of stocks that I've been trading lately -- including Acacia Communications (ACIA) , Veeva Systems (VEEV) , Weibo (WB) , Gigamon (GIMO) , and even Growth Seeker portfolio holding Amazon (AMZN) -- just aren't at optimal entry points. If you aren't already in, you probably won't feel very good about buying at this juncture.
One long-term, small-cap favorite that is shaping up very well this morning is BioTelemetry (BEAT) . This is a good example of market players looking for stocks that aren't already extended. BEAT is still in its base, and has not yet broken to new highs.
Fabrinet (FN) , my Stock of the Week, is another example of what I call an anticipatory setup. It has not yet moved over key resistance levels, but if the market continues to act well, then there are good odds it will. Many traders like to wait for actual breakouts to occur, but I've found anticipatory trades allow for greater aggressiveness and can pay off much better.
I've made a fair number of sales into strength this morning, and new buys are not easy, but the bulls have the momentum -- and that is the most important consideration right now.
At the time of publication, Rev Shark was long BEAT and ACIA, although positions may change at any time.
