The S&P500 has completely recovered Wednesday's post-Fed selloff. This supports the point I made this morning that the sell-off wasn't due to fundamental reasons but because the computer algorithms were setup to "sell the news." There wasn't any obvious reason for the selling and many editors were scratching their heads trying to come up with an easy explanation for a headline.
Bonds have given back some of yesterday's bounce but the most important action is in the dollar which is up strongly today. That strength is keep gold once again which can't seem to find a bottom.
The market action feels like money managers are just trying to hold things up until the quarter ends. The mark-up action in the FAANG names is a classic illustration and Apple (AAPL) is going to help produce some good management fees this quarter.
Small caps are up a little but they have been lagging lately and the Russell 2000 ETF (IWM) is back under its 50-day simple moving average. Individual stock picking has become more difficult lately but there are some odds and ends working. The pot theme really helped the trading last week but that has dried up and that has suppressed positive sentiment to some degree.
I'm not doing much. One of my favorites, HTG Molecular (HTGM) is building on yesterday's strength and has some good looking momentum into its earnings report in a few weeks. I would like to put more cash to work but there isn't much that is meeting my requirements right now.
The market will continue to be distracted by the Kavanaugh hearing this afternoon but it looks like there will be enough buying support to hold things up today.
