Despite the celebration over the good report from DJIA member and Action Alerts PLUS holding Nike (NKE) , it is sloppy and choppy market out there.
Breadth is slightly positive, with around 3,800 gainers to 3,200 decliners but the FATMAAN names are lagging and the Russell 2000 ETF (IWM) is down.
The biggest problem is that there isn't any great sector action. The SPAC names are correcting again, Tesla (TSLA) is hurting the EV sector and the pockets of strong movement are very narrow. There is a mishmash of stocks that are trading well such as Pinterest (PINS) and Zoom Video (ZM) .
One group of interest is exercise equipment. There was news Tuesday that a private company called Echelon had a joint venture with Amazon (AMZN) to produce a "Prime Bike." This proved to not be the case. As a result Peloton (PTON) and, my stock of the week, Nautilus (NLS) are breaking out to new highs Wednesday morning.
There are a few things like that on the radar but overall it is extremely narrow. My game plan is to increasingly be defensive as we work through this poor seasonality and to start looking for stocks that are likely to see positive reactions to third-quarter earnings.
There should be some positive window dressing at the end of the month but this is a very mixed market right now and we need to wait for better chart and price action to develop.
(Amazon and Nike are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.)
