After a breakout in the indices to new all-time highs, we are seeing some slow and random action Monday morning. There was a negative report about China trade that helped to kill positive pre-market action but sellers still aren't able to gain any traction.
Breadth is negative with about 2,650 gainers to 4,200 decliners and most of the selling is mild. There are 230 new 12-month highs, which continues to be quite low for a market hovering at all-time highs.
What is most fascinating about the market right now is how confident many of the anticipatory bears are. They believe disaster is on the horizon and that the folks that are buying now are fools who will pay a heavy price. As someone who is very vigilant and highly reactive, I see no reason to anticipate a sudden market collapse.
I am carrying a large cash balance -- but not because I'm bearish. I'm simply having a hard time putting capital to work. There are charts that I like such as Sea Limited (SE) , an Asian gaming stock, that is working on a new all-time high. SE is my Stock of the Week.
A few other charts of interest are Relmada Therapeutics (RLMD) , Livongo Health (LVGO) and Aurinia Pharmaceuticals (AUPH) . All of these charts have been consolidating lately and have good support, which makes trade management easier.
My attitude about this market continues to be to focus on the action in individual stocks and ignore the macro arguments. When more stocks start to breakdown, my cash levels will rise and I will be properly positioned.
There is no need to try to predict when the long list of negative arguments will matter. The anticipatory bears have forgone some great opportunities in recent weeks, which is what happens when you predict rather than react.