The uptrend remains firmly intact, but some choppy action and low volume is causing some traders to be more cautious.
Major US indices all finished narrowly negative Monday in a very quiet session. Volume in the S&P 500 ETF (NYSARCAE:SPY) was the lowest for a full-day session since August 15. The uptrend remains firmly intact, but some choppy action over the last week and low volume is causing some traders to be more cautious.
Apple's (NASDAQ:AAPL) resurgence continues, albeit without a real igniting bar back to the upside. Since David Einhorn announced he was suing in an attempt to get AAPL to return cash to shareholders, the stock has been in a grind higher to enter its earnings gap. Today the stock gapped up and rallied early in the session, but the move petered out in the afternoon.
LinkedIn (NYSE:LNKD) saw some weakness very early in the session after rising more than 20% on Friday following earnings, but quickly reversed and ignited to the upside to finish 3.3% higher on the day. This move feels a bit like the Netflix (NASDAQ:NFLX) move post-earnings, as both companies delivered blockbuster reports and have rallied impressively.
Overall it was a quiet day in the market despite turmoil in European markets. The best approach right now is a patient one as the market sits near highs but shows a lack of broad momentum.
Scott Redler is long MSFT, C, FB, CRUS, ZNGA, BAC, MGM, GE, TBT. Short SPY.