There’s been a ton of newsflow lately, but much to the chagrin of traders all across the land, it’s not resulted in any actionable volatility. The Fed yesterday did as expected and maintained a hawkish tone, the earnings docket has been dominated by the FANG names, Congress agreed on a budget, and another stab at a new healthcare bill is in the works, but the indices have been stuck in a rather narrow range.
Still, the under-the-surface choppiness that we referred to a couple days ago has continued, although it’s still unclear if we’re seeing some real warning signs or if it’s just some rotation out of areas that have shown some relative strength lately, like semiconductors.
As we say, we’ll see how the proverbial cookie crumbles. The broader technical profile remains positive, and the big FANG names continue to act well, even if the bears are understandably grumbling about valuations as they draw comparisons to market conditions in 2000. There’s definitely been some outperformace in just a few big-cap names and a narrow overall trading range lately, which could lead to a resolution at some point. It’s anyone’s guess, however, which way that resolution may take us.
Let’s take a look at some charts:
At the time of this post, RevShark had no position in any of the stocks mentioned.