It was a choppy day of action that ended on a sour note as a breakout to positive territory on the release of the Fed minutes was aggressively sold. What has plagued the market for much of the last couple months has been the tendency to sell into strength with the opportunity arises.
Overall some give-back after the big gain yesterday on the Jerome Powell interest rate speech is not a big surprise and is healthy, but the selling pressure in the final hour did not have a good feel to it. That action illustrates how nervous market players still are after struggling for a couple months now.
It is likely that there is a high level of nervousness in front of the weekend news that is expected about China trade. While there is some hope that progress will be made, expectations are extremely low and there is concern about being caught in a reversal.
While I'm optimistic that a more dovish Fed will help put some support under this market, there are obviously still some reverberations from the difficult action since the end of September. It is probably a positive that sentiment is still quite mixed but it is going to cause some lump action. When we combine that with the China trade drama it isn't too surprising that there are some bouts of selling like that which occurred in the final hour.
The action today was not sufficient to undermine the positive technical action that occurred on Wednesday, but it is still extremely challenging to find good setups in individual stocks. I still can't find much and that is keeping my cash levels high despite a more optimistic mindset.
Have a good evening. I'll see you tomorrow.