Overall market action is poor this morning, with breadth running more than 2 to 1 negative and new 12-month highs dropping to around 160. Speculative action has slowed down quite a bit, with only about a dozen names up more than 10%. There isn't any great rush for the indexes, but buyers are standing aside and waiting to see how things develop.
The bears often become overly excited about weak action like this, but, at this point, it is just the normal ebb and flow after a good run. Some stocks need to reset, and there is going to be rotation as traders hunt for better entry points in some things that are not as extended.
I remain quite positive about trading action in individual stocks into the end of the year and view weak days as opportunities rather than a foreshadowing of looming problems. That doesn't mean that we can be undisciplined, but it also means that we shouldn't' be panicky.
So far, I'm a net seller this morning but will be watching for opportunities on some low-volume fades.