Although the Nasdaq is positive, breadth is solidly negative again with around 2200 gainers to 5000 decliners. Volatility indices such as (UVXY) are higher, and Apple (AAPL) and Tesla (TSLA) are fading following a jump higher on their splits.
The poor underlying action has been ongoing for a while now but has not had any major negative impact so far. Once again selective stock picking is working very well under the surface. The electric vehicle sector continues to see action with names like Workhorse (WKHS) , Tortoise Acquisition (SHLL) , Graf Industrial (GRAF) , and Spartan Energy (SPAQ) . My stock of the week Lithium Americas (LAC) is performing well.
Typically I'd be more concerned about the weak breadth and rising volatility but it still is not heavily correlated selling. These pockets of good trading tell me that there is still a good speculative appetite. Market players aren't dumping stocks, they are just looking for better opportunities. This is not a market-driven by macro concerns. It is a market that is still driven by trying to find ways to put capital in the best positions.
How you view this market is going to depend on what you are looking at. If you have a bearish inclination then the likelihood is that you are focused on weak breadth, extended technical conditions, and questionable economic growth. If you are bullish then you are focused on the positive pockets of price action and the stubborn momentum.
I continue to hunt for ways to put money to work but I am also making sure that I harvest some gains along the way. I'm watching very carefully for a shift in the character of the market but still don't see it.
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