Yesterday's weak action continues. The selling pressure isn't that bad but very strong momentum has slowed substantially. Many of those great recent stock picks are catching their breath. That tends to excite the bears but it is not a major market negative right now. If it continues and the bounces don't hold, we'll have something to worry about. Right now it is just routine consolidation.
On the trading side, I've tightened things up a bit and made a few sales to protect profits, but I'm not inclined to do anything with index ETFs on the short side. I do have some Direxion Daily Small Cap Bear 3X ETF (TZA) but I will wait for further weakness before ramping things up.
Yesterday's bottom-fishing picks, MeetMe (MEET) and Fabrinet (FN) , are doing well. I've flipped the MEET position for now but may re-enter as it develops. I made a partial sale of FN but definitely want to buy more as it holds support. I've also taken gains on Ocular (OCLR) , which I highlighted not long again.
U.S. Steel (X) has been a disappointment and I've cut most of that. I'll keep a small position and watch for it to setup again.
Netease (NTES) , my Stock of the Week, reports earnings tonight. I've taken my gains and moved to the sidelines for now.
It is sloppy and thin action and I'm going to stay patient while things sort out. It's been a good run and locking in some gains seems prudent. The top-callers are growing louder but I'm not convinced that we are at a major turning point.
