The most dangerous markets are those that don't go up on good news. There have been some very good earnings reports, the Fed is dovish, we are awash in fiscal stimulus, and the senior indices are hovering at all-time highs, but the price action in many stocks is quite poor.
This morning Facebook (FB) and Apple (AAPL) gapped up on good reports but have traded straight down so far. I would not be surprised to see Apple go red at some point today. The indices are currently around the lows of the day but what is even worse is the continued lack of energy in small-cap stocks. The small names perked up yesterday and have some improved momentum recently, but it is not sustained and fizzles out fast.
There are a few pockets of strength, such as oil, but few themes are attracting interest right now.
It is a peculiar market because, on the surface, it looks quite positive, but if you dig just a little, there is quite a bit of rot. The price action is not reflective of a bull market, but you would not know it from the media coverage
My game plan is to manage positions tightly and not let losses build. I'll also be hunting for some new buys, but I just don't see much. The best names on my screen at the moment are Ocular (OCUL) and Camping World (CWH) .
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