Stocks inched slowly higher most of Wednesday but sold off in the last 30 minutes of trading as Intel (INTC) reduced its guidance at an investors day and market players worried about bad trade news overnight.
It was a day of uncertainty and random action as the China trade issue created too much uncertainty to make any big moves. The risk of being on the wrong side of the news is just too great unless you are a gambler rather than a speculator.
Trade news could hit at any time and cause some big moves and that undermines everything else that is going on. There are earnings from Disney (DIS) which look OK and is getting a positive reaction. Roku (ROKU) is also out and is trading strongly on its numbers.
In a different environment these reports would be creating some positive sympathy but the trade thing is the only issue that really matters. None of these strong reports are going to be able to drive sustained momentum if there is a negative news on trade. When ETFs and algorithms are the majority of the volume it is the indices that control what stocks do more than their individual merits.
At this juncture there is no alternative but to wait for news and try to resist the temptation to make trades just to stay busy. We will have some big moves soon that will offer some opportunity but we have to sit an wait for it.
Have a good evening. I'll see you Thursday.