Sidelined..

You couldn’t help but sense many "active" market participants are sidedlined and waiting today for a few of the catalysts noted yesterday.   Volume, which usually isn't a big deal to DJIM, is particularly low today.   Other than a few outperformers in each of the sectors we follow, most plays on our list exhibited some indecisive action today.    After couple of weeks of rally time, we guess it's time for this market to take a deep breath and let some folks to catch up.

Frankly,  we'd prefer the next mini move to be down as opposed to up.    Another quick move to challenge this year's high is not only somewhat unrealistic, but also irresponsible at this point.    SPX 1115 is just fine with us as ‘R’ at this stage as it's the first flush day low on January 21st.  Cautiousness is definitely in the air because some of the moves from some of our plays are just too big to ignore.    One bright side of the market today is the outperforming financial sector as some mortgage/commercial news flow helped, but overall breadth was not up too par of last week and many sec’s are battling around 50ma (transports, semi’s).   It's actually a bit odd to see an underperforming sector pick up the slack today.   In fact, if it wasn't for the financials, market would've probably done much worse and we'd be even more cautious.

Right now, we know exactly which plays are strong,  but the price at this point makes anyone think twice before adding.    If we do get a mini pullback, we'd like to add back some shares at 9 ema.   This pretty much goes for all of the technology and commodity plays on our list.   Hopefully, we can spend most of this week consolidating and give  plays a rest and give us a chance to enter those plays at a better price.