For the second day in a row, the indices did little, but there was some strong action under the surface. Today was even more deceptive because we had some very weak action in key big technology names that were leaders last year. There are some big gains in AAPL, GOOG, AMZN and PCLN and today it looked like those who delayed selling for tax reasons decided to lock in some gains.
Under the surface, we continue to have some very strong action. Weakness in the dollar helped oil, gold and other commodities to lead the action today, and there still are some very big moves taking place in select small caps. I have plenty of big percentage movers showing up on my screens.
Technically, the indices continue to do little wrong. We are trending up steadily, and there still are some dip-buyers jumping in pretty quickly on shallow pullbacks. However, the big picture isn't without some issues. We have been wedging higher on low volume for a while, and that leaves very weak underlying support. When the market goes up on light volume there is a greater risk of a rush for the exits once we start to pullback.
The strong, positive seasonality is starting to come to an end. You also have to wonder if the profit-taking in the big-cap technology names might broaden as well. While the market is still acting well, the danger of more aggressive profit-taking is increasing......
long GOOG, AAPL
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment