Early Monday morning strength is being used for some mild profit-taking, but breadth is around flat and there are still more than 400 new 12-month highs. The FANG names are leading while the small-caps are slipping a little. There has been quite a bit of rotation in both directions in those two groups lately.
Because of the Columbus Day holiday volume is a little lighter than normal, but we still have the same complacent movement. The bears seem to have given up on calling a top, but the bulls are still wrestling to put money to work. The biggest trading challenge of this market is finding entry points for new buys. The second biggest challenge is sticking with momentum.
Speaking of momentum. Recent "Stock of the Week" and Sharkfolio holding Jupai Holdings Ltd. (JP) is going parabolic on big volume this morning. This is a good example of how entry points can be tough but if you stick with the momentum it can pay off well.
I have a few others names on my radar, including SolarEdge Technologies Inc. (SEDG) , Overstock.com Inc. (OSTK) and GDS Holdings Ltd. (GDS) , but until we have some sort of corrective action in this market the new picks are going to be difficult. Earnings season hopefully will give us some new opportunities.
We need a weak close to impact sentiment. That will be the first sign that maybe the market is ready to rest.