Even though there was a headline stating that no meeting is likely to be planned this week for President Trump and President Xi, the indices are rising again on vague talk about "trade optimism." Weak economic news out of Germany and the usual litany of bearish negatives are being ignored again.
While the indices have decent gains the action is fairly mild. Breadth is running about 4,000 gainers to 2,850 decliners and volume is light. My scans for big movers on high volume is slower than usual but some strength in semiconductors and financials is helping to keep the indices upbeat.
The dollar has strengthened again and that is taking a toll on precious metals.
I'm finding little that I want to buy right now. There are quite a few secondary offerings and a couple of IPOs that seem to have sucked up a lot of capital and that seems to be causing some rotation out of the names I typically look to for momentum. There is more soft action in individual stocks than I'd like to see and that is preventing me from doing any buying.
The increase in offerings and secondaries makes for an easy negative argument and the price action in individual stocks is starting to confirm the thinking. It may just be a short-term issue but it is causing some problems Thursday.
A good illustration is StoneCo Ltd. (STNE) , which continues to trend lower after its secondary offering traded very poorly on Wednesday. While it will likely make for a good opportunity at some point, currently it is in freefall.