Dip buyers went to work quickly Monday morning as market pundits dissected Warren Buffett's rather dour opinion of the overall market.
While Buffett called into question "value" opportunities in many big caps, market participants were quick to embrace the idea that the best values are in stocks that Buffett is simply too big to buy. Buffett himself has said that he is handicapped by Berkshire Hathaways's (BRK.A) (BRK.B) size and would approach things quite differently without that restraint.
While that doesn't change the view that the overall market isn't offering great value buys it does make it clear that there are pockets of opportunity for small traders and investors even if we are struggling with a bear market.
Currently, breadth is running about 2,800 gainers to 4,400 decliners but the Nasdaq is positive, FAANG names are mostly outperforming and there is plenty of positive action in small-caps. Mixed markets like this often offer the best trading opportunities because traders tend to gravitate toward the best action and make it self-fulfilling to some degree.
This is an environment for trading price action. Stocks are not moving in highly correlated action, which favors stock-pickers and technical buyers. Time frames have to be short and trades must be well defined but this is a good market for those that move quickly.
Overall market conditions look poor but there is some good trading under the surface.