I wasn't really watching the stock market too closely today but on the surface it appeared to be a positive day. The S&P and Dow continue to lead while the Nasdaq continues to lag and has yet to make a higher high. Resistance for the S&P is at 1131 while the Nasdaq has both 2307 and then 2341 to deal with over the next few sessions. A breakout is certainly possible here although my readings are getting just slightly overbought. Friday's jobs number could have a big impact on things.
Although things look decent overall, to tell you the truth, I am just not that interested in doing a whole lot right now. My trades earlier this week have affected my outlook on things greatly. It is not that I am mad or anything - frankly, I haven't really thought twice about my decisions to enter those trades. Perhaps it was because overall I didn't gain or lose anything. I have had no regrets about any of the trades and would make them again.
What those trades have done to me, however, is put me in a state of questioning this particular market at this particular time more than I normally would. I sense that we are in an even more "random" market setting than normal. There could be many reasons - summer volume is low, HFT, earnings season, whatever. As I go through my scans, I see setups that looked great fail, and I see stocks that looks very iffy go up. I see some earnings plays follow-through nicely, and I see others that appeared to post good earnings as well just reverse hard and tank. I can't for the life of me figure out exactly what is making some of those go up and some of those do the exact opposite. I can honestly say that right now, when I look at a chart, I feel I have no reasonable expectation for what will happen next.
Normally, if you see a chart that looks bullish, you would expect at some point it moves higher. Right now, I can't say I expect that. There are a few charts that look good to me right now from a traditional technical standpoint for various reasons - MNTA, SPRD, SHOO, NZ, SWIR, AONE, CNAM are ones on my watchlist at this moment. But I really don't have much interest in playing any of them because I get the sense that, again, the outcomes are just completely random. (Actually, I should share that I am seeing a brand new technical pattern emerge in many stocks - I'll call it the breakout failure reversal pattern where stocks breakout, reverse lower hard on heavier volume, and then just rise right back up to new highs.)
Sometimes I get in a mindset where I just lose interest in the market for various reasons and I think I am in one of those "funks" now. I am not complaining - just sharing my thoughts and observations. I have no reason to think we won't keep moving higher from here, but something doesn't seem right to me. Take it for what it's worth (probably not a whole lot). Good luck Thursday.