The market is in a holding pattern, as it wrestles with technical overhead and waits for the next move by central bankers. The slow summer trading doesn't do much to liven things up, either.
Small caps are lagging again, pockets of momentum are limited and breadth is running solidly negative with about 3,000 gainers to 4,100 decliners. There are almost 200 stocks hitting new 12-month highs, but a 100 at 12-month lows.
My game plan is to stay patient and be ready to move quickly when the momentum picks up in either direction. It is very likely that the Jackson Hole event later this week will create some movement when the Federal Reserve convenes for its annual economic policy symposium, but we have to see what setup develops over the next couple days into the news. There could be a sell-the-news opportunity or a buy-the-dip situation, but we won't know until later. Now is the time to strategize as the price action develops.
One sector that will likely see a quick response to Fed news is precious metals. Gold (GLD) and gold miners (GDX) have pulled back after a big run and look to be regrouping now. I have limited exposure but am looking to rebuild some positions in Kirkland Gold (KL) and Agnico Eagle Mines (AEM) .
A smaller cap gold miner on my radar is Sibanye Gold (SBGL) , which is based in South Africa. China has limited gold imports to curb the dollar strength against the yuan. This may help foreign domiciled miners like (SBGL) .
My "Stock of the Week," Smith Micro Software (SMSI) continues to develop well and I'm watching for the opportunity to increase my position.