Profit Taking Sets In

The market is under pressure this morning, most likely due to profit taking given the run that we have had. The Nasdaq has been up in 7 of the last 8 days.

Bond yields are moving higher on a report that wage inflation rose a bit (unit labor costs). But at 4.83%, the 10-year is still well below the fed funds rate, and still below the T-bill rate as well.

The semis are down -1.7% so far, but biotechs, homebuilders, and energy stocks are down just as much.

The volatility indexes and put/call ratios are rising, which could put a bid under the market. But the market is also short-term overbought, so some consolidation would be healthy.

I, for one, have raised quite a bit of cash taking profits and would welcome a pullback to put money back to work at lower prices.