It is very tough trading out there Tuesday morning as momentum has disappeared, and there is little speculative energy. Breadth isn't bad, with around 3,200 gainers to 4,300 decliners, but the number of new 12-month highs is dropping and is below 350 now.
What is worse is that the pockets of strength have just about evaporated. My scans of the market show that there are only nine stocks up more than 10%, and the list of those trading near intraday highs is quite short. There just isn't much appetite for chasing strength right now. Most of the meme trading has also dried up, and good chart setups are not producing meaningful moves.
It has been said that the opposite of love isn't hatred but indifference, and what we have right now is indifferent trading. There just isn't much interest regardless of fundamentals or technicals.
I've made a few buys, but mostly I'm just managing positions and trying not to let losses grow. I added to Mogo Finance Technology (MOGO) , which had an initial buy and $13 target today from BTIG. The analyst "values the company at $8 per share and its stake in cryptocurrency exchange Coinsquare at $5 per share. Mogo offers an "attractive means" through which investors can play both the digital disruption of the Canadian financial services industry and the increasing adoption of bitcoin and other cryptocurrencies."
I also started a position in Marathon Oil (MRO) , which has a very attractive flag pattern. On June 10, RBC raised its target on the stock to $18 and stated that "The stock provides an attractive opportunity to express bullishness on oil prices, while the company's "ultra-low" break-even point and maintenance capital program support robust free cash flow generation at even depressed commodity prices."
We will see what else develops, but right now, the trading is very tough, and it requires some effort just to stay even.
