After the indices danced around for a while this morning, bids have disappeared and the indices trended straight back down. Breadth is still positive but has declined to around even but it's the FAANG names that are really being pounded. Antitrust is the big concern for the big cap technology names but the group has been automatic buys for so long that it is painful when that dynamic comes to an end.
There is quite a bit of talk out there about how foolish it is to look for counter-trend moves when the economic news is so poor. The reason that the biggest bounces tend to occur in the worst markets is that few people are ready for them. They catch everyone by surprise and then both shorts and underinvested longs scramble to reposition.
I'm not predicting a bounce at this time but this is the sort of market action in which they tend to develop. Any spark of news about progress on China or Mexico trade will cause some algorithms to trigger and a mad scramble to play the news.
Precious metals are leading again today. My two top gold plays are Agnico Eagle Mines (AEM) and Kirkland Lake Gold (KL) . I'm sticking with them and ready for a little volatility. Gold (GLD) still doesn't have a great technical setup but it can move over and hold $125 then it looks much better on a relative strength basis.
I continue to do little as far as stock picking.