Although the senior indices continue to run higher there is some choppy action out there. Tesla (TSLA) has reversed sharply after a gap-up open, and the momentum in Apple (AAPL) is slowing. There is some rotational action into financials (XLF) and industrials (XLF) . Small caps are positive but the biotechnology sector (IBB) is at its lowest level since June 18.
Most importantly, the speculative action continues to slow. It started deteriorating last week and it continues to be quite slow. My list of stocks that are up 10% is quite short once again and there just aren't any 'hot pockets' in the smaller names.
It is very mixed and chaotic action but it still has a positive tone and the indices are holding. If Apple goes red that may accelerate the rotation into 'value'.
I'm staying selective with my buyers and am not adding much that's new. My favorite SPAC, Tortoise Acquisition (SHLL) continues to run and I've named a second SPAC as my Stock of the Week. Graf Industries (GRAF) is involved in autonomous driving and is setting up well technically.
I'm concerned about the action I'm seeing on my screens, especially in the biotechnology sector. The indices are still in good shape but the slowing in speculative trading combined with weakness in some of the momentum groups has me raising my cash levels as I'm finding less to buy.