There is much discussion this morning about what is driving the stock market action but a big part of it is that it is just the aftershocks of the recent earthquake of volatility. Market players are still trying to sort out the action and position for the uncertainty that lies ahead.
The big question at this point is whether the worries about the coronavirus have been excessive or not. Central bankers, governmental officials, and business management are extremely cautious but there is still no way to know if the damage will be as bad as predicted.
This morning Treasury Secretary Mnuchin stated the coronavirus could slow the economy for a year. The market was corrected recently but if Mnuchin is correct it does not seem that his prediction has been priced into the market. The Fed obviously cut rates in anticipation of this slowing but there just isn't much hard evidence of it so far which is why the indices are holding up relatively well.
One of the big challenges of navigating the market right now is that it is almost totally driven by the indices. The big swings each day undermine individual stock picking. It is possible to slowly build much longer term positions as the indices bounce around but this action is not supportive of good chart setups for shorter term trades in individual stocks.
The best environment for stock picking tends to occur when the indices are making more mild moves. In that sort of environment, the individual winners start to assert themselves and it becomes easier to find them. An example on my radar today is Ocular Therapeutix (OCUL) , which is being discovered after a good earnings report and a strong pipeline. There are few picks like this right now but that should change once the volatility in the indices starts to slow.