The bulls are still in control of this market and pushing higher but the momentum is slowing today and the action is a little more mixed. Breadth is running 4000 gainers to 2900 decliners and there are around 400 new 12-month highs. Apple (AAPL) is red but Tesla (TSLA) has been trying to bounce back from its 'bear market'.
Most notable on my screens today is the action in Twitter (TWTR) . Twitter has long been the social media underperforming but it periodically experiences spikes when hope that it is finally on track to fulfill its promise blossoms. The metrics reported today show quarterly revenue over $1 billion for the first time ever, plans to increase hiring by 20%, 21% growth in active users and a few other favorable growth areas, but it is missed on EPS and is still not doing much with the bottom line.
The top line growth is likely enough to produce some sustained momentum and I'm likely to add to my position today as it develops.
Although I try to take the market as it is, I can not help but hope for some pullbacks in smaller-cap names that are reporting earnings soon. There are quite a few that should have solid reports but they need the right technical setup to make big moves. I'll be highlighting a few names I'm looking at in my next post.
The dilemma of the market continues to be that it is too extended to aggressive chase but too strong to short or sell. The action is flat-ish right now and that is a step in the right direction as far as creating better technical conditions.
There continues to be plenty of news flow about the coronavirus but the market reaction is a shrug.