After a week of robust gains it isn't too surprising to see some mild profit taking on Monday morning. Breadth is running about 2400 gainers to 4400 decliners and the list of new 12-month highs is down to around 100. Oil stocks are leading to the upside. Precious metals also have some interest on news that China has been building its gold holdings. FAANG names are in the red but Apple (AAPL) is helping to hold up the indices. Pot stocks are weak after a bearish argument in Barron's.
A couple names that have been hit recently, StoneCo (STNE) and Zscaler (ZS) , are bouncing this morning and that tells me that market players aren't more interested in finding good entry points than rushing to escape positions.
There appears to be a little worry out there about the upcoming earnings season but it is better that stocks not run too hot into the reports. The market has not been at all concerned about the numerous reports that overall earnings are likely to be down a fair amount.
I am mostly working on my watch lists today and have identified quite a few names that are building support levels and have good chart patterns for the upside when overall market conditions improve.
A couple names I'm looking at this morning are AudioCodes (AUDC) , Camtek (CAMT) and Ideanomics (IDEX) . There aren't many big moves on my screen today but the best setups tend to be in biotechnology.
The dip buyers have shown up after the S&P 500 filled the Friday gap, They have the indices off the early lows and now the important thing is that low not be breached this afternoon.