James "Rev Shark" Deporre is off today. This commentary was written by Jim Koford of Shark Investing.
Given how stretched the market's been to the upside, no one should really be surprised that we had some red on the screens today. The action today was sanguine enough as trading got under way, but a little pressure kicked in as we headed into the New York lunch hour, and the indices spent the rest of the session making steady downside progress before a late bounce kept the losses contained.
Breadth wasn't too bad at 3:2 to the negative, and new highs outpaced new lows 260:34. Outside of miners and coals, which bounced back after some pressure yesterday, there weren't many pockets of action. Oils, chips and transports, meanwhile, led to the downside.
I mentioned yesterday that there's been a fair amount of junk stocks moving, and that was the case again today. A few of those names, like ZAIS Group Holdings (ZAIS) and SkyPeople Fruit Juice (SPU) , saw some decent gains today, but anyone who chased early strength got burned, as the flippers took the reins shortly after the open.
The problem right now is one we've seen so many times over the past several years. The action has been undeniably strong, but there isn't much out there that isn't extended and in need of a rest. I'll have some more charts up tomorrow morning, but the setups are definitely sparse.