Despite a gap-up open and a very positive mood, it has been a struggle for much of the market to gain further momentum. Breadth and the number of new highs are still very strong, but the S&P 500 is back to opening levels and the intraday trend is choppy at best.
I'm a very reluctant buyer today, primarily because I'm feeling that moment is slowly ebbing. There are names like AKS Steel (AKS) and Comstock Resources (CRK) that are hitting new highs and have momentum, but they are so extended at this point that it is difficult to feel comfortable with entry points.
I'm struggling with a cold and I know that has an impact on my trading. When I don't feel well, I tend to be more risk adverse and I'm trying to factor that into my attitude about the market. There isn't anything technically wrong with the action, but I'm just not feeling confident in the trades that I see.
One group that I do find interesting here is silver miners. After a strong day on Friday, the group was weak this morning but has reversed into positive ground. I mentioned Pan American Silver (PAAS) and First Majestic Silver (AG) on Friday and may add to those positions. Precious metals in general are on my radar as a bottom-fishing group, especially if overall momentum starts to slow.
As I wrote this morning, this is the third time that the pundits have failed to predict the price action following an important vote, but this time there wasn't even any hesitation before the buying began. The last two times we had sustained rallies as the buyers tried to put money to work, but I'm this time the reaction doesn't seem to be quite as positive. We'll see how things close today, but the "buy the bad news" trade is becoming awfully routine and you have to wonder how long it can continue.