The market is unlocking one of Super Mario’s ways to “get big” this morning, as the Dow Jones Indusrtial Average stodgy mega cap firms are clearly outperforming the Nasdaq, retail sector, as well as the consumer cyclicals and small caps. I remain short Priceline.com, though I am apt to cover at any moment given the lack of downside follow-through in the overall market by the bears to yesterday’s attempted breakdown. For the most part, I will spend the rest of my morning inside 12631 tidying up my portfolio even more than it currently is, still with a heavy cash position ready to put to work.
I am not seeing too many quality long swing trading setups just yet, though the occasional impressive chart like SAVE or MAC has popped up on my screens. In addition, the now-obvious bear flag on the S&P 500 daily chart could easily morph into a longer base should we continue to bounce around on a daily basis. Indeed, the lack of trend has been the defining change in character of this tape in April. While it would be great to see that the upward trend resumes imminently, I’d at least like to see a better-defined trading range before I adjust accordingly and put on a series of new trades.