The market is seeing trading range action but it is quite choppy and random, which is making it challenging for day traders.
Opening strength was sold and breadth has fallen to around 2,650 gainers to 4,380 decliners. Banks are lagging, while the Nasdaq 100 ( (QQQ) ETF) is leading primarily due to continued strength in Apple (AAPL) . As I've pointed out, Apple seems to function as a de facto money market fund at times as market players park cash there when there isn't anything else that is working.
I've been dinking around on a few quick trades and am not making much progress right now. While there seems to be some minor profit-taking, market players are anticipating more squeeze action on continued faith in the power of the Fed. There has been an obvious positive bias to the action and that is preventing the bears from trying to press.
Disney (DIS) is seeing some bounce action following its earnings report. Although there was nothing very encouraging about the report it was a good setup for some "buy the bad news" action. I don't expect the stock to continue up from here but the bounce is attracting some bargain hunters who feel they'll miss out if they don't jump in right now.
One name I have added today is SmileDirectClub (SDC) . The controversial provider of invisible teeth aligners announced partnerships with a number of insurance companies including UnitedHealth Group (UNH) and Anthem Blue Cross. This appears to be a major step and may push some of the shorts to cover.
I have initiated a small index short and will press it depending on price action. I want to see if the intraday lows hold and whether there is an improvement in breadth.
I don't see much opportunity for making big moves right now and it is necessary to be very short term. Still, the trading range action is health for the longer term.