It was another day of mixed action, but the bears were unable to generate any sustained selling momentum. The big cap technology names from the Nasdaq 100 exchange-traded fund (QQQ) led the day, but breadth was mixed and a late flurry of selling hit. There was some underlying support that prevented any real technical damage.
It was a mild-looking day, if you just glance at the charts, but the choppiness and rotational action is an indication of growing instability. This is a mild shift in market character that requires increased vigilance. There is no reason to rush for the sidelines right now, but don't be too complacent.
The good news is that there continues to be some very good stock picking. Several names I mentioned such as Seres Therapeutics (MCRB) , Xeris Pharmaceuticals (XERS) , Tortoise Acquisition (SHLL) , and Growgeneration (GRWG) performed very well and there are quite a few others.
There was less action in the low priced "junk" names, but that isn't all bad. Some increased prudence by traders when the market is quite stretched is a smart move and "smart" isn't a description we often hear lately about individual traders.
I try hard to not rush to be bearish, but I'm seeing some reasons for caution. I'll keep pursuing stocks picks aggressively, but it won't take much for me to hit the "eject" button and raise more cash.
Have a good evening. I'll see you tomorrow.