There are plenty of good reasons for the market to give back some gains this morning but this is a market driven more by price action than news headlines right now. Markets that moved like this one did last week tend to stay sticky to the upside as under-invested bulls look for entry points. The folks that couldn't keep pace with the gains last week are fearful of missing out on more gains so when there are no pullbacks they are willing to chase instead.
Breadth is running about 4900 gainers to 1900 decliners but the number of new 12-month highs is down considerably from Friday at around 250. Financials are leading while precious metals are lagging. FAANG names are gaining traction as market players try to put more cash to work.
The biggest obstacle I see right now is finding charts with decent entry points. Some of the names I've been trading recently such as QIWI (QIWI) , PaySign (PAYS) , Enphase Energy (ENPH) and Zynex (ZYXI) are parabolic and I'm more inclined to be a seller than a buyer.
My Stock of the Week, Parsons (PSN) is a play on the Raytheon (RTH) , United Technologies (UTX) deal but the group is mixed at the moment.
I'm more likely to be a seller of stocks than a buyer at this point but that is simply a function of not finding entry points I like. I'm not looking for this market to suddenly reverse to the downside unless it is hit with some surprise news.
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We finally saw the Citi Panic/Euphoria Model push into Panic territory -- and here's why I believe a retest awaits.
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