It looked like we were going to have a late-day fade, but the bulls managed just enough buying to keep the trend of positive Mondays going. Breadth was slightly positive, but volume was light and the action very choppy. Regional banks and chips led the show, while precious metals lagged.
Overall, it was an insignificant day and the limited intraday volatility just made it worse. Basically, we are on hold as we await the rollout of major earnings reports. AA is tonight, but of limited importance. It is INTC tomorrow night that is going to set the tone for this market. So often we see strength in the chips just as the market tops, so it is particularly interesting that the SMH broke to a new high today.
The slow upward drift on light volume continues to offer a limited number of opportunities to put capital to work, but you can knock out some gains if you stick with short-term longs. Unfortunately, there isn't anything new or profound that can be said about this environment. There are few worries, but little passion and few signs that a turn is about to occur. Earnings will be the key, but we'll have to wait for one more day before we'll have some sense of the mood.....
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