We have some 'don't short a dull market' action on this slow Monday with technology names like Nvida (NVDA) , Applied Optoelectronics (AAOI) and Weibo (WB) leading the way. Breadth has improving a little with about 3600 gainers to 3000 decliners. There are over 300 new 12-month highs.
This action is a good example of why I continue to write that it is better to forego trying to call major market turns and focus instead on stock picking. It is a fairly narrow market but you have a better chance of profits with a few individual picks rather than indices that are moving a tenth of a percent like the S&P500 has recently.
Unfortunately, market inertia tends to stir up the inclination to make market predictions. There are always fortune tells but when we have flattish action like we have now the folks making the big, dramatic calls receive more attention simply because there isn't that much else to cover.
The main theme I'm seeing today is bounces in technology stocks that have acted poorly over the past couple weeks. An example is Ultra Clean Holdings (UCTT) which sold off on increased volume despite a great earnings reports and increased guidance. The stock is bouncing a little today as bargain hunters show some interest but the broken momentum is scaring away other traders.
PetIQ (PETQ) is a recent IPO I've mentioned a few times lately. It has been volatile but is finding some interest today as volume has dried up.
The indices are hitting intraday highs and there isn't any political news to excite the bears for a change. This market has been ignoring news for a while and it's a refreshing change when there isn't much new news for it to ignore. There is no choice but to just pay attention to price action rather than headlines.