It is nice to see a little dip buying kick in and take the S&P 500 back to the opening highs, but market players don't seem overly anxious to chase things higher. In the past, the V-shaped moves tended to start slowly and then gain steam as anxiety over being left behind began to build. We haven't seen that dynamic occur since the post-Brexit action in early July.
Strength in Netflix (NFLX) , Alphabet (GOOGL) , Amazon (AMZN) , Apple (AAPL) and a few other big-cap names is the key source of positive action. Breadth is very good, but the speculative action in secondary names is limited.
Names such as Teck Resources (TCK) , Emerge Energy (EMES) , Match Group (MTCH) , Domino's Pizza (DPZ) , Cloud Peak Energy (CLD) and Vale (VALE) are showing up on my radar, but I've not been adding much. This market simply has not rewarded the buying of momentum very well lately.
If the recent pattern holds, this positive action will be quickly forgotten and we'll wonder why the mood was so different the prior day.
My style of trading is to focus on finding the best setups and then trade them aggressively. Quite often that means I have to wait while things develop. This is one of those times. It is the nature of the beast and it can be a bit frustrating to not have money at work when we bounce, but that doesn't mean it is a mistake to be patient and look for a better edge.