The major indices are close to flat, breadth is slightly positive, and it is painfully slow out there. It isn't bad action, but there is no energy. Speculative stock picking has dried up, and there is just a bunch of stocks drifting around randomly. Those individual traders who were so aggressive a couple of months ago are nowhere to be found. On my scans, I have only 16 stocks up more than 10%, which is what you tend to see in markets taking a hit rather than those that are flat. A flat market can offer some very good trading at times, but this isn't one of those times right now.
The good news is that it can be a good environment for building some longer-term positions, but if you are looking for immediate momentum, you are out of luck.
One name I am adding this morning is Tencent Music Entertainment (TME) . TME was caught up in the Archegos debacle, but Credit Suisse (CS) has now closed out its exposure with a huge loss, and I think there may be some good support there. TME announced a $1 billion buy-back on March 29 and some of the best growth of the media stocks that were hit in that selloff. I'm building a position and will continue to buy above support at the 200-day simple moving average around $18.75.
The good news is that this sort of dull action tends to resolve itself to the upside. There is an old saying, 'don't short a dull market' and they don't get much duller than this one right now.
