Breadth is running about 4,400 gainers to 3,350 decliners, but trading is sloppy and inconsistent once again. Part of this is thanks to the continuing corrective action, but there are also are some of the usual end-of-the-quarter window dressing games, as well as macro concerns about the mess in Congress. It doesn't help matters to have Treasury Secretary Janet Yellen warning of a disaster that awaits if the debt ceiling isn't lifted. That is not going to happen, but it does create some uncertainty that feeds some selling pressure.
We have a bounce in cryptocurrencies, but a very poor report from Bed, Bath, and Beyond (BBBY) is hurting the retail sector. Small caps are struggling in many cases because of a lack of bids rather than anything fundamentally negative.
I've been doing some adjustments in front of the fourth quarter, but I am not making any big moves. I already have a very large cash position and expect to do some significant buying once we move closer to third-quarter earnings.
One stock that I'm adding to today is Acacia Research (ACTG) . I've mentioned it many times in recent months, as a deep value play. Part of that value is being recognized this morning, but the stock is seeing a "sell the news" reaction. ACTG owns around 6% of the hottest IPO in London in years: Oxford Nanopore. Based on current numbers, ACTG's stake in Oxford is worth around $400 million. The market cap of the stock is $350 million, and it has substantial other assets. This is a deep value play, but value plays can trade very poorly at times.