The Monday morning chasing was a bit frothy and that helped to create a quick intraday reversal as momentum players decided it might be time to ring the register on some good-sized gains. As I've been pointing out, it has been a good market for stock-pickers but that doesn't mean that the momentum won't sudden stop.
We will see how the market acts this afternoon and into the close, however, these sharp intraday reversals tend to lead to more selling. When the indices reversed on March 4 it led to a week of selling. While conditions are not the same at this point, if we end up with a "green-to-red" day and a weak close it is going to trigger some selling.
Nevertheless, don't forget that we have the Fed decision Wednesday. When the Fed is dovish -- like it is now -- the market will celebrate even if there is nothing new or surprising in their policy statement.
There are some signs of support kicking in, but the key here is the close.
I still like the action I'm seeing in many individual names such as StoneCo Ltd. (STNE) , Pyxus International (PYX) , Pareteum Corp. (TEUM) , Sea, Ltd. (SE) , and even Viking Therapeutics (VKTX) . However, I'm taking partial profits, keeping stops fairly tight and am not going to give back much should this market roll over.
Pareteum is a holding in TheStreet's Stocks Under $10 portfolio. Click here to learn more about this portfolio, trading ideas and market commentary product.
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