Market players used up a substantial amount of buying power yesterday as they drove the indices straight up from the open and were unable to duplicate the effort so far this morning. The dip buyers just didn't have the conviction today and quickly turned into sellers as soon as the open low was breached.
The selling accelerated and yesterday's S&P 500 low was broken but there is some effort to find support now. Breadth is abysmal with about 1400 advancers to 5400 decliners, and the Russell 2000 Small Cap Index (IWM) is no longer exhibiting relative strength.
The inability to hold the opening lows triggered a large number of stops in my individual stocks. I've raised my cash levels quite a bit and have only made only one buy so far. My buy is an addition to a position in Kirkland Lank Gold (KL) . The company issues a solid report and should do very well if gold (GLD) can find some support and build momentum.
Indices are bouncing back a bit as I write but the problem is that there may be some bounce plays but sustained momentum is very tough to find. If you catch something on a pullback, it is important to make sure you do some flipping and protect gains.
Right now my focus is reducing risk as the market figures out if it is going to shake off the trade war worries or correct further. I'm not worried about missing out on upside right now.