Buyers are often anxious to put capital to work to start the week but so far we have a very mixed market. While the technical picture is positive and there isn't any major news flow, the price action is random and slow. The most notable action is weakness in the software sector but strength in financials is due to rising bond yields. Bonds (TLT) are looking at their levels in about three weeks.
After the breakout in the indices last Thursday I was hoping that we would start seeing some better stock picking action. So far there isn't too much happening. There aren't any major themes developing and the thinner small caps are particularly lifeless.
As always there will be some traders that are finding the action more appealing but that is largely a function of style. As a stock picker that focuses on technical setups, I'm finding a paucity of perky picks right now.
Everything related to the market goes through cycles and that means that if you are having a hard time trading right now that it is bound to change sooner or later.
The good news is that sentiment is still quite sour and many market players are cautious. That should help to provide some underlying support but it doesn't give us much upside energy.
My plan of action is to keep on hunting for technical setups and to consider some index trades into stronger emotions. Right now the dominate emotional is indifference and that doesn't make for many opportunities.