With the indices at all-time highs as we head into earnings season, there should be a bit of euphoria in the air. Instead, we seem to have a very high level of indifference.
A solid report from Citibank (C) is seeing a 'sell the news' reaction so far and the financial sector (XLF) has given back Friday's gains. Citibank was ahead on both EPS and revenue but that seems to have been well anticipated.
Breadth is running slightly positive but there just isn't much momentum at the moment. Amazon (AMZN) is up on the Prime Day hype, and Apple (AAPL) is helping the indices, but small caps are laggards again. There are a few themes of interest.
Technically, the indices are fine but if you are looking to add long positions it is narrow action right now. There is no reason to be overly bearish but that doesn't mean that there are easy buys.
I've remounted some Grayscale Bitcoin Trust (GBTC) which sold off sharply this morning following some comments by President Trump about Bitcoin. I believe that the speculative interest in Bitcoin has shifted lately and now view it as a good trading vehicle as it develops further. I have no interest in Bitcoin other than as something that I can trade through a stock-based vehicle.
My Stock of the Week is cloud-based security software company Qualys (QLYS) . It has consistently put up good earnings reports and I'm looking for anticipation of another one to push it out of a consolidation range.
As a stock picker, I do not see very much of interest right now but some consolidation would be helpful in developing better charts.