After a strong two-day run, stocks took a rest Tuesday. The indexes suffered some minor losses and breadth was around 3,100 gainers to 4,200 losers. Over 100 stocks hit new 12-month highs, which illustrates that there were some pockets of strong speculative action.
If you have been reading my market reports, then I know that I'm a big fan of stock picking. It was particularly strong a couple of weeks ago, but there was some rotational action that slowed things down. We are now seeing the stock picking tick up again as market players continue to show an appetite to put money to work.
One of the most positive aspects of the market over the past couple of months is that stocks have not been moving in close correlation. There continues to be a good variety of action and stocks with superior fundamentals and charts are doing well, while those that are extended or expensive are struggling. It is a refreshing shift form the periods when the FATMAAN tech stocks seemed to be the only thing that mattered.
There is much speculation about the presidential debate tonight, but I don't expect it to have any major impact on the stock market unless there is a big surprise.
I continue to see quite a few good looking stocks, but the S&P 500 is stalling a bit at 50-day simple moving average resistance and that needs to be resolve to keep things running.
Have a good evening. I'll see you tomorrow.