The indices have bounced off their early lows, but the theme of choppy and random trade continues. Breadth has improved to slightly positive, however it is a very difficult market to trade with most of the best moves fizzling out quite quickly. I only have about 25 or so stocks on my scan that are up more than 5% and there is little consistence in what is showing up.
My primary gauge of market health isn't the indices, but the number of buyable "setups" that I can find. I don't care if the indices are up or down, what matters is that I see chart setups that I think will produce a sustained move. In the current market I don't see too many. The overall direction of the indices is positive but individual stocks don't seem to be trending very strongly.
This is a matter of style to a great degree and I'm sure there are others who disagree with me. If you are focused on financials you are probably happy with some of that action but the typical small cap movers that I focus on are not doing much.
One name on my radar is CLPS, Inc. ( CLPS) is a China based IT company that provides consulting services to banks and financial companies. It IPO'd at $5.25 in May. The main driver for the company is a mobile payment platform which seems to be generating some attention. The stock is pulling back as I write and I'll be looking for some entry points as it develops futher.
This is not a bad market from the standpoint of the indices but the individual stock trading is dull and a bit too random. Hopefully we will have some more opportunities as earnings season continues.
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