We have seen alternating days of either promising or cautionary price action in the market this week. Thus far this morning, the action seems promising on the surface, though the small caps in the Russell 2000 Index are lagging the rally. I have quite a bit of green on my watchlist of long ideas, but am resisting the urge to overtrade. While it is certainly true the overall uptrend in 2013 is sound, the type of action seen this week smacks of indecision and of a corrective market. So as the market becomes increasingly selectively, so too will I.
The shipping sector has benefitted from a rotation this week. Inside 12631, we have been looking at three of the better technical plays in the group: DSX GSL STNG. They figure to be right at the top in the list of leaders in the industry. Elsewhere, Nike is holding its post-earnings gap higher quite well. But I am still looking to see how these breakout plays fare into the afternoon before becoming too bullish short-term.
The bulls did a nice job of recapturing 1548 on the S&P 500 after yesterday’s weak close. And they must now contend with the minor overhead resistance levels of the past week or two before all-time highs at 1576 can be contested.
cross-currents galore … Cyprus weekend rescue, toppy market action, quarter end, tax day looming