Just your typical market day after a melt up breakout as most stocks consolidated gains, some played a little catch up, some just buoyed around. The predominate themes remain as investors buy the weakness (1182), yet don’t chase prices higher preferring just to hold on to the holdings they have with little reason to sell in this environment. A ‘dovish’ inline FOMC minutes report solidified to hold tight for those still fearing an early tightening.
As we come up to next weeks earnings, we doubt much broad based follow through to the upside, investors may have some fear of a repeat of a post-INTC report like sell -off this Q. If any fear is out there, we wonder why not sell before and we’re not seeing this play out. Still, it might be a ‘sit on hands’ type market till next week. Maybe some of today’s out-performance from Financials is compelling and carries over for a few days and/or retail SSS numbers will allow this market to tick up, but we`re not holding our breath.
If a lull does play out, we have no problem with it, we’ll just follow our Shadowlist (last on Feb 21 Journal post) which broke down our widely followed by sectors and go where the money flow is that day if you‘re already not a holder. Yesterday, it was our LED stocks in our Tech sector and today Commodity linked/ China play PUDA added since on DJIM pages (Brean Murray initiation with a lofty tgt) was the play, which helped bump LLEN (alerted) as well. If you go to our search link, you can search “Murray” and see what we think of their ways. Whatever their ways are with China stocks, it’s always a good idea to buy the news for the short term.
There is a lot of noise about 10yr TSY, oil going higher, etc. and the possible implications. As far as we’re concerned this will be topped by whatever happens in earnings and so we’re not going to take our eye off the ball ….we have no problems waiting for new plays to emerge and add to what we already trade from our list.