Following the Fed decision on Wednesday, the overnight market session was very volatile, with a big drop and a recovery. By the time the regular session opened, stocks had recovered, and the S&P 500 was now back to where it was before Jerome Powell caused a selloff.
It is relatively quiet action in the early going, but breadth is solid. Tesla (TSLA) lost its bounce, but all the other FATMAN names are doing well. There is mild strength across the board, but there is very little strong momentum. My list of stocks up more than 10% is a couple of dozen names, but there isn't that much at intraday highs.
My primary focus is looking for some relative strength in the sectors that have been hit the hardest. I'm itching to be aggressive with some biotechnology names, but it just isn't happening yet.
What the market needs is some flat action and consolidation. We have had a usual amount of volatility this week and have been jerked around by the computer algorithms more than usual. Traders are not feeling very confident, especially when it comes to individual stock picking, but that will change if we have some calmer action.
