The market shrugged off yesterday's slightly negative reaction to the Fed, but it wasn't the sort of reversal that has been so common in recent years. There was some buying support, but it felt more reflexive rather than driven by performance anxiety or fundamental considerations.
The dilemma of the market at this juncture is that there isn't anything wrong with the price action, but entry points are nearly impossible. Many traders could find nothing to do but chase the bulk shipping stocks again. When DryShips (DRYS) , Sino-Global Shipping (SINO) , Genco Shipping (GNK) , Globus Maritime (GLBS) and Euroseas (ESEA) are the leaders, it is clearly a market led by speculative garbage. That doesn't mean they won't follow through, but they are pure trading vehicles rather than investments.
Most traders I talk with during the day continue to be frustrated by the lack of action on their screens. They aren't negative. They are just struggling to find things to do. The market continues to act in a matter that prevents good trading setups. What we really need is some decent downside to shake things up, but apparently that would be too simple.
Banks continue to lead, precious metals lag and other groups are very choppy. We can always trade bulk shippers if we are bored enough, but it feels rather desperate.
Have a good evening. I'll see you tomorrow.