There is plenty of green on the screens after the big gap-up open, although the action in individual stocks so far isn't too impressive.
Breadth is very strong, but we are not seeing much chasing. There was a brief spike on better-than-expected ISM numbers and then that was sold. The indices are hovering around their opening levels.
Part of the problem is the strength on Friday caused some names to be overbought on the open and the overhead resistance in the S&P 500 at 2861 is still holding. Apple (AAPL) is lagging, which is causing some issues, and the poor action in the Lyft (LYFT) IPO is hurting the mood as well. (Read Paul Price's take on Apple's valuation here.)
The Lyft IPO is particularly worrisome as it will create some distrust of the upcoming IPOs, and Uber in particular. In retrospect the very aggressive pricing in Lyft was a mistake. It was originally thought It would price in the $62-68 range and that was lifted to $72. The underwriters aren't even trying to hold the $72 level so far.
I have not done any major buying so far but Viking Therapeutics (VKTX) is my Stock of the Week and I'm looking for entries as it develops. Another biotech, Amarin Corp. (AMRN) had good news last week and is pulling back Monday. I'm looking for entries as that develops.
Overall, I'm not very impressed with the action I'm seeing on the screens. Individual stocks seem to be lagging the indices and that is not a good sign.
How Much Money Will I Need to Retire?
Want to learn about retirement planning from some of the nation's top experts? Join TheStreet's Robert "Mr. Retirement" Powell live in New York on April 6 for our Retirement Strategies Symposium. For a limited time, tickets are available for $99 for this full-day event. Check out the agenda, learn about the speakers and sign up here.