Wait and see mode..

An early market move off Bin Laden news sunk as quickly as he did.  No conspiracy theories on the market (can’t wait to read Bin’s pockets and compound were full of silver on Zerohedge).  Instead, a simple go away(May) and take some profits with you played out with earnings winding down leaving broad market with little reason (catalysts) to head higher at elevated levels.   

As discussed last week, the market knows all the trends within sectors and upcoming companies will not change the picture as far as corporate profits are concerned.   Macro side, Global PMI’s mostly slightly lower today, but best described as ‘better than feared' in market lingo.   Wait and see mode in effect today, same trend as in April with the Black sheep groups, ie. Health care outperforming today, while R2K was a definite underperformer.  Let’s give R2K a break after making all- time highs just last week.  It doesn’t hurt for some of the stocks we like this Q off earnings to consolidate and buy lower from this mid-small cap mix.  Also SOX was visibly weak all day, software, networking, but without a known catalyst, don’t put much into any groups action today.  Some profit taking is all it was.

Update on Tuesday, May 3, 2011 at 12:35PM by Demi/ YourPersonalTrader

China internet stocks weakness due to RenRen IPO newsflow. Likely overblown in respect to peers, nobody really seems to know why sell off yet.

http://online.wsj.com/article/SB10001424052748703922804576300901773800620.html

R2k weak again, not helping