The indices are holding steady this morning but the action in individual stocks is a bit troubling. We have weakness in a number of big-caps, including Perrigo (PRGO) , U.S. Steel (X) , SunPower (SPWR) , Eli Lilly (LLY) and Myriad Genetics (MYGN) .
Breadth is still slightly positive and there are over 300 new highs so far, but I see quite a few reversals and few stocks pushing to intraday highs. Biotechnology is under pressure and precious metals are leading, which is not a great combo.
I am not inclined to make market calls but there are times when the action on my screen pushes me to shift to a more defensive stance. This is one of those times. It has been a good run off the Brexit panic but I'm seeing a little more choppiness and finding it harder to make progress, despite big moves in individual stocks on earnings. With earnings coming to an end this week, the lack of catalysts may take a toll.
Two of my biggest winners, Yirendai (YRD) and Acacia Communications (ACIA) , continue to hit new highs but my positions in these are now quite small. I'll be looking to add back, but I'm not willing to chase.