The market has been a bit of a roller-coaster ride since the Fed decision last week. We boomed higher on that news and then stumbled on worries about Deutsche Bank (DB) and oil before regaining some strength today after endless dissection of last night's presidential debate.
Overall, we are still within a trading range and the S&P 500 is under the 50-day moving average but is holding key support around the 2125 level. It is not a great technical setup, but it isn't a downtrend and that is the key.
Despite some decent gains in the indices, breadth wasn't all that great. On the other hand, there was some nice speculative action to be found if you did some digging. I've mentioned Yirendai (YRD) and Weibo (WB) , for example. The bigger-cap names were the primary leaders as money gravitated toward more liquid names.
The big issue we face is whether either side in this battle can produce some momentum. One day the bears are looking pretty good and the next it's the bears. The news that drives us one day is forgotten as we move on to the next issue. The Fed is already forgotten and the debate will be ancient history in a day or two.
The good news is that there are signs of stock picking working well again. That was shunted aside when we danced around to the central banks, but today there were some opportunities for outsized gains in the right names. If that trend continues, I will not be complaining.
Have a great evening. I'll see you tomorrow.
