After a weak start, the indices are back in positive territory and breadth is running very close to even. While the overall momentum looks tame, there continue to be some very good pockets of momentum. We have over 250 new 12-month highs and the trend followers are doing quite well.
A good example of the follow-through is Ultra Clean (UCTT) , which I mentioned yesterday. The stock broke out of a nice pattern and is building on that gain today. Another breakout I'm watching today is Bellicum Pharmaceuticals (BLCM) , which is making a good move on increased volume.
Halozyme Therapeutics (HALO) is another one I mentioned yesterday. This is a classic chase trade and it is working well as analysts have increased targets substantially and market players build positions. Jupai Holdings (JP) is a thin China asset manager that is trying to move up off support.
These are just a few examples of the action in individual stocks that is rewarding stock pickers. The point here is that focusing on indices and market timing isn't offering much opportunity. The opportunity is in individual stock picking.
If you want some negative arguments, we can talk about weak seasonality that occurs next week and about how the Federal Open Market Committee meeting could cause problems, but the more productive approach is to ponder what could go right.
I'm going to continue to look for favorable action in individual names. My only regret is that I should have been more aggressive with my buying.