Trading continues to be extremely slow, but we are seeing "Don't short a dull market" action. Breadth is very healthy, with more than 4000 gainers to 900 decliners and all major sectors in the green. There isn't much aggressive chasing so far but the longer we can stay green, the more likely folks on the sidelines will decide to risk it and put some cash to work. Most of our V-shaped moves have started out very unconvincingly on low volume, so I wouldn't be too quick to dismiss this positive action.
The challenge presented by this sort of action is that it really isn't technically compelling. The charts aren't that great but if we hold up for a while, the frustration over being left behind starts to develop and we will keep inching up, which causes more frustration, and so on. You can't blame the buyers for being hesitant when we have had some many failed bounce attempts lately, but that also creates conditions for a squeeze.
I'm inching into a few things, including B&G Foods (BGS) and Flotek (FTK), but still have very substantial cash on hand. This very light volume is going to make it tough, but I'll be looking to push a bit if we can hold up for a few more hours.