It always surprises me on days like today how quiet it is despite the very big point gains. We have been inching up steadily all day, and even though volume is quite light, I'd expect a bit more excitement as we keep on making new intraday highs. There are obviously buyers out there, but I keep wondering if they are humans or machines.
Anyway, we have a classic trend day in the works. When the bulls held the opening lows, that was the signal to just keep chugging along. These moves have a tendency to go further than many traders anticipate, and that creates some additional angst if they aren't given some room, but it sure isn't easy to be very trusting.
I'm working hard to put more cash to work but with limited success. While a few of my favorites like Molycorp (MCP) and VirnetX (VHC) are acting well, most of the things I'm following are off early highs and are drifting a big on lighter volume.
One chart that just caught my eye is ExlService (EXLS). This is an India-based outsourcing firm that mainly does work in the insurance industry. The stock has held up very well as the broad market struggled in August and is now threatening to break out over the early-August highs. It is very thinly traded but has solid earnings growth and a reasonable P/E.
Unfortunately I see very few similar chart setups, so it's tough to put cash to work. But if we take what the market gives us, it can add up nicely.