Traders were unable to do much Monday as they await developments on a China trade deal. There could be news at any time about the tariffs that will go into effect later this month. While many traders have a theory about what might happen, any bet on the outcome right now is a gamble rather than reasoned speculation.
Some market players decided it was better to move to the sidelines in front of the news and that produced some weak action. Breadth was around 3,400 gainers to 4,000 decliners and the indexes had minor losses with Apple (AAPL) being responsible for a large percentage of it.
Ultra short-term traders found some action primarily in the biotechnology sector, but it was a mixed bag with quite a bit of random movement. There is still plenty of hope that there will be positive progress on a deal with China and we also have a friendly Fed that will update its policy on Wednesday. We just have to tread water on why we wait for the news flow. I suspect that there will be some substantial swings as we gain clarity on tariffs.
For now, the best approach is high levels of cash, very short-term trading and mental preparation for some quick moves as the news unfolds. The best thing you can do is embrace that no one knows what this market is going to do next, but that is likely to see some substantial movement.
Look for more of the same action tomorrow. Have a good evening.