|Day Low/High||20.76 / 21.45|
|52 Wk Low/High||3.77 / 24.30|
Next week we are likely to see some shift in the focus of the market as we move back to macro and big picture issues.
This action tells us much more about the health and sentiment of this market than the S&P 500 which is trading flat.
Now's the time to take a step back and prepare mentally for what happens next.
We are due for a bounce and the earnings tonight are a good catalyst but then what?
I expect the indices will jump around again soon on news about fiscal stimulus.
Smaller stocks that were big winners are coming back down right now, and here are some on my screen.
There are some signs of an intraday reversal in the S&P 500 SPY that I'm monitoring.
It is logical that stocks consolidate a little as we head into earnings season.
This is a very healthy market and some consolidations and pullbacks would be advantageous for trading.
There are a couple of things that are helping to contain the selling.
This isn't a market with a lot of very extended stocks so the chances of catching some names at support are good.
Don't be in a rush. The key to accumulating stocks in this environment is to move incrementally.
There is plenty of chasing of the strength which is an indication that FOMO is in overdrive again.
Here are several names I'm looking to build on further weakness.
Biotechnology is always high risk but the right plays move unlike anything else.
Precious metals continue to soar and China names are under pressure.
Even if you are convinced that disaster lies ahead what choice is there but to try to make some money while you can?
I expect those that have been missing out to be lurking not too far under the surface.
Traders are moving quickly to find some individual stocks that are acting well.
Is this just 'one day and done' selling or the start of a deeper pullback?
It isn't just the bears that would welcome a pullback in this market.
Bears have been confounded by the positive sentiment, but economic realities are not going to suddenly disappear.
Despite the lackluster action there are some pockets of good stock picking again.
My main focus right now is on stronger defense.
Anyone attempting to navigate this market based on macro-economic analysis is going to have a tough time.