Without any clear news catalyst to trigger algorithmic trading, stocks are drifting lower. Breadth is running poorly, with about 2300 gainers to 3900 losers, and the number of new 12-month highs has fallen to 150. There is no big rush for the exits, but buyers are standing aside and letting some profit taking occur.
Recently there has been some good sector action in biotechnology, semiconductors, China-related and some other groups, but there isn't anything much moving higher today. Banks had a good move on the Fed news yesterday, but have reversed today.
So is this just a healthy pause that will allow stocks to consolidate and reset before the next move higher, or is the much-anticipated negative seasonality finally starting to appear? The bears have been hoping that September would live up to its reputation as the worst money of the year, but so far it has been the opposite.
I've been a net seller over the last couple days, and have sold a few more things today as I'm focused on keeping my account as close to highs as possible. There is no technical reason at this time to be overly pessimistic, but many individual stocks are starting to slow after big runs.
A couple of stocks that I am looking to add to are Nutanix, Inc (NTNX) which is finally showing signs of coming out of a trading range and Himax Technologies, Inc (HIMX) . HIMX has pulled back to support around $10 and is now trying to turn back up. I like the volume pattern on the HIMX chart and the clear support level at $10. I'll be looking to build this position if it can close over $10.75.