Morning Standoff

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The initial softness at the opening bell was met with buying, and we now found ourselves hovering slightly above the flatline on the senior indices. Underneath the surface, it is a mixed bag. However, the energy and materials are finally seeing some inflows, as those sectors are actually leading today’s session higher. I have been looking for this rotation, out of some extended technology and cyclicals, headed into the new quarter, and so far so good.

My main focus right now is not being lulled into complacency by the market. The easier and more energetic part of the uptrend occurred in the first ten weeks of last quarter. The latter half of March, however, was characterized by false breakouts and increasingly trickier price action. I am still actively looking for quality long setups, but you can be sure that I will have no qualms about pressing the eject button if we continue to see faded breakouts.

In particular, the precious metals miners, financials, and small cap energy stocks command my attention this morning. I will be spending some time finding the best acting stocks this morning, as they are the ones likely at the top of big money’s lists of priorities. Indeed, I have a keen interest in seeing how the large institutions and hedge funds position themselves in the new quarter, and so should you.