It might be a new year, but it is the same old bear market.
The first market session was a gloomy affair as Apple (AAPL) , Tesla (TSLA) , and other big-cap technology names led the market lower. The Nasdaq 100/Invesco (QQQ) was the biggest loser with a loss of 0.7%, but the Russell 2000 fund (IWM) wasn't far behind with a loss of 0.6%.
Breadth wasn't terrible at 4,200 gainers to 4,000, and the good news was that only 115 names were hitting new 12-month lows. There was some strength in China-relative stocks, precious metals, a few financials, and some biotechnology, but there were no real hot spots.
The first few days of a new year are subject to positioning and rotational action, but it is clear that there is no real rush to put substantial funds to work. This is still a market primarily driven by economic worries, and there are also some valuation concerns as we approach fourth-quarter earnings numbers.
It doesn't help sentiment when stocks like Apple and Tesla are hitting new lows. For a long time, they were safe-haven plays, but there is just the opposite.
Technically the indexes are barely holding support, and we have to wonder when we retest the October lows. It is hard to imagine this market finding support without new lows occurring first.
The best course of action right now is to stay patient and don't be in a rush to put precious capital at risk.
Have a good evening. I'll see you tomorrow.
