Strength in Home Depot (HD) and Walmart (WMT) has the DJIA in positive territory, but some cracks are starting to appear in the market as breadth is running 3-5 negative and small-caps, growth, biotechnology, and some other sectors that have had good runs are starting to roll over.
There is some rotational action that is keeping the indexes sticky to the upside, but under the surface, there is increased pressure, and some support levels are fading. A couple of examples of names that have had strong runs that are reversing sharply today are Aehr Test Systems (AEHR) and Liquidia Corp (LQDA) , Uber (UBER) , and Lantheus Holdings (LNTH) .
I've been selling into strength for a while now, and my cash levels have increased quite a bit. I find that the best way to time the market is to let individual stock positions determine how much exposure I have. If the pundits are bullish, but I can't find new buys, then I'm not going to put money to work. It is easy to concoct some sort of bullish narrative, but if there aren't good technical setups, then it is undisciplined to chase it.
The best-looking name on my screen is Veru (VERU) which is undergoing a very dramatic short squeeze. I've made no new buys so far today, but I will continue to look to see what sets up.
This market needs some corrective action, and it is likely to occur on a rolling basis and will not be that evident in the senior indexes.
