Quick Look: Stocks Steady On Light Volume

Stocks are higher again in early trading, but we saw this happen yesterday morning only to fade later in the day. Volume on the NYSE yesterday was the lightest of the year. The Consumer Confidence index for March came in at 63.4, below expectations for 65.0. Asian markets were lower overnight, and Europe is lower this morning after S&P downgraded both Greece and Portugal's debt ratings. Oil prices are higher to $104.40, while gold is flat around $1419. The 10-year yield is higher to 3.45%; and the VIX is down 3.5% to 18.75. Techs stocks are leading so far today, while financials are lagging. Yesterday we some some more breakouts to new highs, include MercadoLibre (MELI) and Lululemon (LULU). Trading comment: Yesterday's light volume hints at a lack of real conviction behind the buying, the list of leading growth stocks breaking out is slowly growing. I would still focus on the relative strength leaders, as they continue to outpace the overall market and should continue to do so. Lots of energy stocks are also showing favorable price action, as they take advantage of high commodity prices to grow earnings. I don't think now is the time to bottom fish or try to play catch-up with the laggards. long LULU, MELI