After the chaos of the Russell Index rebalancing and the drama of the G-20 meeting, the market is set to take a rest as we head into the Independence Day holiday. Technically the indices are slightly extended and momentum is slowing so it is a perfect time for some consolidation.
In the early going the action is lackluster. Breadth is running 3000 to 3700 negative and the number of new 12-month highs has dropped to a little over 100. My scans of stocks making big moves on increased volume are very short.
There are a few odds and ends on my screen, such as Revolve (RVLV) , that has some strong initial coverage from analysts. RVLV is seen as a leading edge fashion play and should remain in play for that until its earnings reports eventually hit.
There are a few biotechnology names on my radar and there is some bounce in gold miners, but this is definitely a very dull market.
My game plan is to keep stops tight and protect gains and not be in any rush to make new buys. We could see a little 'don't short a dull' market upside but this is not a market that looks like it is going to suddenly catch on fire. There isn't any reason to have a strong market opinion in either direction right now. Respect the price action and don't waste time trying to make predictions.