For the second day in a row we have extremely slow trading. Breadth is slightly positive and we have some strength in commodities, chips and regional banks, but there just isn't much life out there.
Market players just aren't showing much interest, although the technical action isn't that bad.
Sentimentrader.com notes that the number of indicators that they have at extreme levels is at the lowest level in 12 years. That tells us that there just isn't any strong emotion right now and when we don't have high levels of fear and greed we tend to move in random fashion.
What bothers me the most about this market is that I see so little speculative interest. The hot money is sitting on the sidelines and isn't doing anything. That might be good if you want to average into stocks that are drifting down on light volume, but it doesn't make for very good trading if you play momentum.
I am doing a few things, but I continue to find it very tough to put much money to work. VirnetX (VHC), which is a patent play, is on my radar again. That chart has been setting up very nicely and it just needs a volume push and a move through $22 to trigger it.
CVD Equipment (CVV) is an interesting speculation on a new material called graphene that is seen as having many applications in the semiconductor, solar and batteries fields. It had a good earnings report last night and is gaining some attention among momentum traders.
Unfortunately, until we have more lively action it is going to be tough to do much. I'm going to continue digging for some buys, but don't anticipate being very aggressive.