The market bounced off the early lows but the action is very sluggish, with limited buying interest so far. The biggest problem recently is a lack of upside momentum, although the market has been holding steady. There is dip-buying support but not much chasing, which is keeping the market pinned down.
Breadth has been strong but it is dipping to around 2 to 1 negative on the Nasdaq. Apple (AAPL) continues to be a major drag and I don't see any real speculative action. A few China names have acted well recently, but that has dried up and the best action is now in precious metals and oil.
I cut back quite a few positions this morning. A few breached support, like MagnaChip Semiconductor (MX), and others aren't seeing much interest. I'd rather make the sale and rebuy higher if I have to. I look at it as a form of insurance, and, if I have to pay a bit more, that is my premium cost.
I'm still happy to buy but there is very limited action. Alon USA Energy (ALJ), which I mentioned the other day, is acting well and I sold Santarus (SNTS) into the FDA news today. Vanguard Health Systems (VHS) is a thin hospital play that I've had on technical watch and it is starting to break out.
At the time of publication, Rev Shark was long ALJ and VHS, although positions may change at any time.