The gap-up open was quickly sold, as market players seem more interested in cleaning out their portfolios so they can start fresh in 2017, rather than starting new positions. Breadth is running about 2,600 to 3,800 negative, and we only have about 100 stocks hitting new 12-month highs today.There is weak action in the big-cap FANG names, and there isn't much going on as far as themes.
The action today is dominated by subjective factors, such as taxes, allocations, window dressing and mental preparation for a new year. There is no way to game these things in a logical manner. If you are trying to trade like you do at other times of the year, you are likely having a hard time.
I have a few small-caps on my radar, such as Cemtrex (CETX) , Hudson Technologies (HDSN) , Conatus Pharmaceuticals (CNAT) and Tabula Rasa Healthcare (TRHC) but the thin trading is impeding momentum. It is only going to slow further as the day progresses but the longer-term pattern of these four names looks ok so I'll give them some room.
For those of you heading out early today I want to wish you the best in the new year. I know it will be a very challenging market at times but I also am certain there will be some outstanding opportunities. We just need to put forth sustained effort.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider CETX to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.