We're seeing typical holiday trading this morning. The mood is upbeat and breadth is perky, with 3600 gainers to just 1400 decliners, but volume is painfully light.
Normally, the light volume isn't that big of a deal in this environment because some themes and pockets of momentum will attract attention. Traders will gravitate toward a small group of stocks and create their own momentum.
But in this market, individual stock-picking has been unimportant for a long time, and that is helping to prevent the sort of speculative action we normally see in thin trading. There are a few things that are moving, but it's a mixed bag and very random.
Because of the lack of any real aggressiveness by the hot money, there is a greater tendency to flip for quick gains. No one has the confidence to ride momentum since there are so few signs of it.
Thin trading is always a challenge, but more so today. Regardless, I'm digging for a few picks. One that I've had success trading is VirnetX Holding Corp. (VHC), and that is back on my radar as it consolidates good news from Monday and shows signs of another leg higher.
I have a few other stocks on watch, but they are trading so thin that I'm not likely to be in long enough to mention them. I'm going to keep looking for hot money to focus on something, but I'm not optimistic.