After the big pullback yesterday buyers are understandable skeptical this morning. We are still up a fair amount and breadth is quite positive, but there has been steady selling so far.
The news out of Europe, which is the excuse for this rally, just isn't very compelling. In addition, if you were caught too long yesterday it is very tempting to use this early strength to cut back. Poor action in Apple (AAPL) isn't helping matters either.
The key now is for the dip buyers to show some resolve, but after yesterday they are probably a bit nervous and are going to wait to see how well we hold up before they start putting some cash to work.
Several stocks I've discussed recently had good earnings last night. Flotek Industries (FTK), C&J Energy Services (CJES) and Clean Diesel Technologies (CDTI) are all in the energy sector and will remain on my radar, but I'm inclined to sell just about anything into strength in this market when I have the chance.
I'm being patient and am not doing any buying at this point.