Tight Range

{+++}The markets were up in the morning, and flattened out by mid-day on the S&P 500, although the Nasdaq 100 kept making higher highs.  In the last hour that negative divergence finally affected the indices, as they both rolled over, closing with losses in the Dow and S&P 500, still managing to hang on to gains on the NDX and Philadelphia Semiconductor Index (SOXX).  Mixed close. The technicals narrowed to a 3 to 2 positive ratio on advance-declines on New York but positive by just 30 issues on Nasdaq.   Up/down volume was a little worse than 7 to 5 positive on the Big Board on total volume of over 1.3 billion.  Nasdaq traded 2.1 billion and had just under a 2 to 1 positive volume ratio.

I’m seeing $2 stocks jumping to $5 and that sort of thing lately and it makes me wonder if things aren’t getting silly. Complacency rules the day, the VIX is dropping like a stone and although Rome is still burning (not according to the media) the appetite for risk is back. Let’s not try to figure it out, let’s just try to trade it well.

Keep your eye on TECH, it triggered today and acts well, LPHI which triggered short at 14.75 yesterday or the day before is starting to fail on better volume. IMA triggered today, but I want to see better volume. MOS is still cooking but is getting overextended.

I want to take a breather for a day before I clog up the pipeline with any more names.

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