I didn't like what I saw in the charts this weekend and I'm not liking what I'm seeing in the price action this morning. Although breadth is around even, the indices are struggling to hold key support levels and there aren't any pockets of momentum to be found.
The best action I see is in names like former stock of the week Tech Resources (TCK) and Alphabet (GOOGL) . There is no momentum to be found or place to hide other than in cash. (Alphabet is part of TheStreet's Action Alerts PLUS portfolio.)
The charts looked so poor this weekend that my chart of the week is a short of ServiceNow (NOW) . The chart broke the 50-day simple moving average and, with a PE of 126, it is not cheap. A few Chinese names are holding up, but the carnage in biotechnology continues and small-caps are not seeing any speculative interest.
I'm holding on to some partial positions that I probably should have dumped and I see absolutely nothing I want to buy right now. There are some good opportunities developing but the key word here is "developing." They are not set up for buying at this point.
I'd like to sound a bit more positive, but this action looks terrible. The point loss isn't that big, breadth isn't terrible, but we only have 48 new 12-month highs to 83 new 12-month lows. Momentum has fizzled and the danger of further downside is quite high.
I have no interest in trying to buy stocks when they are acting poorly. Someone else can try to guess when we have a bottom. I'd rather be late to the party and then stay until it ends.