Orderly Pullback Not All Bad
I would have preferred the market to but up today, but there is still time. The market is a bit weak, some of which could be an options expiration hangover. But the selling seems orderly, and not panicky like last week.
Growth stocks are outperforming, with the NDX -0.3% and the SPX -0.6%. Investor anxiety remains elevated with the ARMS Index at 1.41 and the CBOE put/call still high at 0.92. This weekend, the Market Vane survey hit its lowest reading since summer of 2003 (52% bullish).
The midcap index is moving into the green as I type, which bodes well for growth stocks. Here are some more stocks making notable moves today, and bucking the general weakness:
- ATK, BCSI, LFC, NVO, UIC, CROX, RIMM, GRMN, VSEA, BIDU
Last Thursday was a big reversal, and Friday was obviously a big up day. Now we need to watch for some follow through this week, in the form of another solid accumulation day. The fact that the market might consolidate a little in the meantime should not be disconcerting. I would be more worried if there was no follow-thru this week.
long CROX, RIMM