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So long as we continue to hold the 1300-1332 range on the S&P 500, the presumption is that a stock picker’s market will be magnified. Thus far today, we have some hot pockets of momentum, namely in the steels (after STLD‘s impressive earnings last evening), as well as with the foreign internet firms such as DANG QIHU REDF SIFY YOKU. Some of the agricultural names have been sold hard of late, and are seeing oversold bounces, namely AGU MON MOS POT.
As I write this, I see that the broad market bounce is losing a bit of steam. Just as 1332 acted as a price magnet at the upper end of the range, I expect 1300 to similarly attract price for the time being, until we get a definitive break either way. Hence, continuing to focus on stocks that are actually working, as opposed to being overly patient with laggards, remains the focal point of my strategy at this juncture.
