The action started slowly this morning and breadth was negative, but the indices continue their relentless upside action. There have been quite a few comments about how leadership is narrow, but it hadn't really mattered. We need to be selective with our stock picking, but it is still a market for long-side trades rather than shorts.
Action Alerts PLUS holding Apple, Inc (AAPL) and Amazon.com Inc (AMZN) are doing some heavy lifting and I continue to like Alibaba Group Holding (BABA) among the big-cap technology names. BABA has its equivalent of AMZN Prime Day, which is called Singles Day, coming up next week -- and that may help to keep a bid under the stock.
A good example of how stock picking is working is my stock of the week, Jupai Holdings Ltd (JP) , which is trading up 8.5% this morning. This was a great-looking chart setup, which you can view here.
Another stock I'm watching for entries is Twitter, Inc (TWTR) . As I mentioned in Columnist Conversations, it is under pressure due the events in Saudi Arabia, but this chart pattern is setting up very nicely. Traders chased it on its earnings report and now it is coming back to support at the $19 area. A higher high will trigger a technical buy point.
At this juncture, I'm not going to expend much energy trying to time this market. There is an uptrend -- and even if breadth is problematic, there are no signs that it is time to abandon ship. I'll stay with some picks like JP and TWTR for now.
