The market is doing a very nice job of creating the maximum level of frustration with some gap-up-and-sit action after one flat day of trading. If you didn't load up quickly or if you took some gains on the weakness, you are out of position this morning. The lack of any immediate follow-through is keeping the chasers sidelined as well.
Overall, it is very strong action, with breadth running 3,700 to 1,200 and all major sectors in the green. What is interesting is that oil, gold and commodities are leading while chips and technologies are lagging a bit. High-beta, big-cap names are doing well also but have not gained any further traction after the gap-up open
Technically, we are running into resistance at 1120 on the S&P 500, which is a very obvious resistance level. If we had attacked it with a better base of support, we'd probably cut through it fairly fast, but we are a bit too extended for the bulls to really mount the energy needed for a solid breakout.
I don't have nearly enough inventory, but I did a little flipping into this open of things like Staar Surgical (STAA), which was my stock of the week. I'm now watching for some new entries to develop. We really could use some lower-volume pullback, but this market has been extremely stingy in that regard. I continue to watch to add some of my favorites, such as Mitek Systems (MITK), Web.com Group (WWWW) and C&J Energy Services (CJES), but they aren't ready yet.