Shark Bites: Market Isn't Giving Us Much

 | Oct 10, 2016 | 2:32 PM EDT
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Not all trading ranges are created equal. There are times when a flat market can create a bounty of good trades, but there are also times when there simply isn't much opportunity as the indices churn. Right now is one of those times when finding good trades is like pulling teeth.

A month or so ago, the indices were dead flat but we had a great trading environment for a while as names like AirGain (AIRG) , Acacia Communications (ACIA) , NetEase (NTES) , Momo (MOMO) and many others enjoyed strong momentum without any regard to what the indices were doing.

In the last several weeks, these pockets of momentum have been drying up. We have seen Amazon (AMZN) leading and some action in biotechnology names like Sarepta (SRPT) , but it's been a much narrower market. (Amazon is part of TheStreet's Growth Seeker portfolio.) 

If you just look at what the indices are doing, you won't really have any idea what sort of market it is. You have to dig below the surface and develop a feel for what stocks are leading and whether or not traders have a speculative appetite.

The present market isn't offering us much. There is a good amount of positive action, especially in bigger-caps, but the issue lately is that the momentum in individual stocks isn't sustained. One day something like Weibo (WB) will look finished and then it comes back again. The inconsistency in the indices just makes it tougher.

The above is my long-winded way of saying I'm not doing much. One of my bigger positions right now is TPI Composites (TPIC) , and Etsy (ETSY) , my stock of the week, looks pretty good but I'm not forcing anything.

The one great certainty in the stock market is that conditions will change. We just have to stay vigilant and see what develops.

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