The S&P 500 finished almost exactly flat Wednesday, which sums up the trading action quite well. There were a couple of intraday buy-and-sell programs that jerked things around, including some last-minute selling but overall it was a lackluster day. The market needed some rest after the recent run so that isn't a bad thing. Still, it made for a rather boring day.
The news flow was dominated by endless talk about Tesla (TSLA) . It is a fascinating situation, although the stock is so chaotic it is a gambling vehicle more than a speculative trading name. It can be fun to roll the dice and hope you get lucky and that is what many traders spent their Wednesday doing.
Breadth improved in the afternoon and ended up slightly negative. For a market with the indices so close to all-time highs there are a surprising number of stocks hitting new 12-month lows. I show about 145 today versus around 210 at 12-month highs.
Some small-cap speculative names worked but FAANG names faded late in the day and if you are looking for some strong pockets of momentum it was quite limited.
This is the time of the year when the action can be slow and the best thing you can do is embrace that fact and not try to force trades when there isn't much energy. There are select opportunities but they require careful management.
Have a good evening. I'll see you Thursday.