The market's recent correction action continued but it was dreary and desultory rather than panicky and emotional. The Nasdaq managed a slight gain due primarily to Apple (AAPL) but the other indices were down with breadth around 3-4 negative. New 12-month highs were over 500 names again. There were a couple of bounce tries during the day but they fizzled and the close was lackluster.
This sort of action is a good example of something I've written in the past which is that bad markets don't scare you out, they wear you out. Markets like this cause investors to give up on stocks out of disgust and dismay rather than fear. If we had some real fear it would be great for trading as we'd likely see some big, sharp moves but that isn't what is happening. Most corrections create misery rather than fear.
So when will this poor action end? I have no idea and I believe it is detrimental to even try to predict. I believe this is likely to be a good setup for some upside as earnings season begins but my main focus is to protect capital and pick at a few new buys that are at support levels. A good example of that is Twitter (TWTR) which I added on Tuesday.
There are some interesting speculative plays like NIO (NIO) a Chinese maker of electric cars. A very large holder of Tesla (TSLA) filed Tuesday afternoon that it has a position valued over $500 million at the close on Monday. It is now worth more and the aggressive traders are very active in that one.
The small cap indices look terrible and the market action is dreary. It is the nature of the beast at times and will set us up for another round of great opportunities sooner or later.