We have some very good action to start the week, but the biggest issue of all is whether the bulls can finally generate some sustained momentum. There has been plenty of good news, but the bulls just can't pop this market out of the very long and very tedious trading ranges.
Already this morning the S&P 500 is trying to build on the gap-up open. There is plenty of green, with breadth almost 4 to 1 positive and big-cap leadership from Growth Seeker holding Amazon (AMZN) , and Action Alerts PLUS holdings Alphabet (GOOGL) and Facebook (FB) . Biotechnology is lagging and oil is a bit soft, but small-caps are leading and that speculative interest is a good sign.
It is interesting to see how market players are much more cautious about chasing gaps now. No longer do we have this overwhelming fear of being left out. There is much more worry now about being caught in a fade. It makes for more-normal emotions when there isn't as much desperation about putting cash to work, but it raises the issue of whether this upside strength is going to fizzle out yet again.
With the trading range still unresolved, I'm staying focused on individual stock picking. Facebook, which I discussed quite a bit late week, is my Stock of the Week. Momo (MOMO) has regained its momentum -- and I'm adding to an existing position there. Acacia Communications (ACIA) finally bounced -- and I'm watching for some add points. Twilio (TWLO) held Friday's secondary offering price -- and i'm looking to add to that as well.
I remain woefully underinvested, but what I do have is working. I'll just keep hunting for individual stocks that are working while this trading range continues to play out.
