One of the recurring patterns in this market is a gap down that attracts dip buyers followed by very dull action. The aggressive dip buying sets up an expectation for more movement but Mr. Market does a nice job of frustrating the majority of players by going flat.
There is some green in the indices today, but breadth is running slightly negative and there are fewer than 100 new 12-month highs. On my scans, I see only four stocks with gains greater than 10% and just 25 that are up 5% or more, which is very limited. The Nasdaq 100 ETF (QQQ) is outperforming due to strength in Apple (AAPL) and some FAANG names. Biotechnology is also doing well again.
While trading is dull and volume is low, there is a positive bias. This is the sort of action that brings to mind the old saying about it being dangerous to short a dull market.
One name I'm adding to the Sharkfolio is Jupai Holdings (JP) , which is a China-based wealth management firm for high-net-worth individuals. It had a big run into its earnings and is now setting again. JP had revenue growth of 75% last quarter, earnings were up 150% to $0.55 and it has a trailing P/E multiple of just 7x. It is thin and it's China but the chart is developing.