It is a bit disappointing for the bulls that there isn't some follow-through momentum today. There was a great technical breakout from a long base on Friday but there doesn't seem to be any concern that this market is about to run away to the upside. Fear of being left behind has been a driving force for many of the uptrends in recent years, but that dynamic doesn't seem to be at work today.
One of the dangers in this sort of market is that there is an inclination to start making big market calls. When it is slow and dull and there aren't many stocks moving, a good way to create some excitement is to make a "big call." At least that sort of call can make you feel like you are doing something productive when there isn't much of interest on the radar.
While I'm not rushing to make new buys, I am putting some key stocks on my "stalking" list. These are names that look promising but aren't quite ready for aggressive buying. A good example is Splunk (SPLK) , which I had named a stock of the week recently.
Splunk is due to release earnings on Aug. 25. It has had some merger and acquisition rumors recently but the chart alone justifies keeping the stock on the radar.