Stocks are lifeless this morning, with breadth dropping fast. Early strength in the S&P 500 was quickly sold, and there are very limited pockets of momentum again. I'm growing tired of reporting on the lack of trading energy, but it has been the main characteristic of the market action recently, along with the choppy rotational action.
The biggest problem that the market faces is that good fundamentals and news are not producing positive price action. An example is Camping World (CWH) which posted earnings above consensus views and raised guidance. The stock was trading up in the pre-market but is now down around 4%. There was nothing wrong with the report, but market participants just are not interested in buying stocks based on solid numbers.
One name I have added this morning is Twitter (TWTR) . It is more of a safe haven because it is a bigger cap and a decent chart. I don't expect it to move quickly, but it has a clear stop-out level.
Small-caps continue to act like death. My screens are heavy red, and there just is no interest in buying them based on fundamentals or charts. We have a lack of interest, and that means a lack of liquidity.
My best advice is to stay patient, take some stops if you are feeling trapped, which will break the inertia, and if you are making buys, then be very incremental and leave plenty of room to add further.
It looks like a good day for my annual medical checkup, so that is what I'm going to do.