Sideways
As market participants we've become so used to turbulent days that yesterday seemed like too long of a walk in the park. We've become so programmed to violent times that even slow sideways action that is 'good' for the market is excruciatingly boring. Guess..we've just become adrenaline junkies relying on news headlines good or bad to get our fix for the day. Yesterday was rehab for a day as normality returned. What is left from the sideways action might as well be construed as constructive action. We wanted the market to slow down from this recent rally and it did. That's good part 1. Another good point is our watchlist here at DJIM was 95% green, which would have given many of us some room to maneuver out of positions if we wanted to and told us we have a good bunch even if the market is mixed. Right now, we are maintaining the idea of buying the dip on many of our favorites, yesterday was frustrating as most provided no such luck. Instead many continued to run forward, especially the often mention lately names like X ballooning to nearly $127 intraday. In runaway cases like this, we'd start to look more closely at other steel stocks that are behind the X curve like a MTL on our list if we can't get a dip on the best name out there. Maybe , we'll get a little retrieve today to snag a few favorite names back. Maybe the most important takeaway from yesterday was in premarket when MON raised guidance heading into earnings season. As we noted heading into the trading day, pre-announcements are on deck and some reports are due that will most likely tell us if we are going to move further to the upside. MON's raising guidance is a feel good start and comes at a time this sector was showing signs of slowdown on the trading end here. MON's guidance holds the other Ag-Chem stocks on our primary and puts the junk small ones back on radar. Maybe not on our radar, but maybe for some of you that like to play the cheapies like SEED. One sector we started to watch is the Rail segment and added CSX as a start to our primary as it made new highs. So basically not much to add here this morning, we're in buy the dip mode intraday and hope for some good to come out of ORCL after the close to set a tone.