The bad news is that stocks are lifeless. The good news is that if you have something else to do, it is an excellent time to do it.
Higher-than-expected inflation numbers helped to offset a little early positive hope about earnings, but there isn't a strong emotional reaction. Traders are looking for an edge, and there just isn't enough volatility to do much.
Banks are seeing a negative response to Goldman (GS) and JPMorgan Chase (JPM) earnings, but it is the inflation issue that is more important than the numbers.
The major indices are close to flat, with the Russell 2000 ETF (IWM) lagging. Breadth started off at more than 2 to 1 negative, and there are only a small number of stocks moving up more than 10%.
On Monday the market gained strength as the day progressed, and it looks like there is more rotation into some of the big caps and FATMAAN names. Groups such as biotechnology are languishing, and even the meme stocks are seeing little interest.
The good news is that some secondary stocks that are suffering from a lack of interest will offer great opportunities, but it may require quite a bit of patience.
I'm doing little, but this action is ultimately more supportive of upside than downside.
