If you are a directional trader of the indices this very flat action doesn't offer much of an edge, but it can be a good environment for trading individual stocks. On flat days the better-performing stocks tend to stand out and since there are fewer of them, traders tend to concentrate on them and create better momentum. That isn't always the case but flat markets can be very good days for trading.
The indices are just slightly red but breadth is running slightly positive. Apple (AAPL) is helping to hold the indices up and there is life again in a few biotechnology names.
Concerns about potential rate hikes are bubbling again despite cuts in economic growth predictions by the International Monetary Fund. Precious metals are pressured by the resulting stronger U.S. dollar and commodities in general are under pressure. There is mild selling again but the bears are incapable of generating any momentum.
I'm looking for stocks that have relative strength. A couple I mentioned yesterday are Weibo (WB) and Momo (MOMO) are acting well and I'm looking to add to both. Etsy (ETSY) is another that has been on my radar and moving well.
I'll be looking to buy if the S&P 500 continues to hold above yesterday's lows but you have to be very selective with individual picks in this market. I don't even want to think about timing the movement in the indices right now.