The most important indices are near flat, breadth is barely constructive, and it’s painfully gradual on the market. It is not unhealthy motion, however there isn’t a power. Speculative inventory choosing has dried up, and there’s only a bunch of shares drifting round randomly. These particular person merchants who have been so aggressive a few months in the past are nowhere to be discovered. On my scans, I’ve solely 16 shares up greater than 10%, which is what you are inclined to see in markets taking successful quite than these which can be flat. A flat market can provide some excellent buying and selling at occasions, however this is not a type of occasions proper now.
The excellent news is that it may be surroundings for constructing some longer-term positions, however in case you are searching for instant momentum, you’re out of luck.
One identify I’m including this morning is Tencent Music Leisure (TME) . TME was caught up within the Archegos debacle, however Credit score Suisse (CS) has now closed out its publicity with an enormous loss, and I believe there could also be some good assist there. TME introduced a $1 billion buy-back on March 29 and a number of the greatest development of the media shares that have been hit in that selloff. I am constructing a place and can proceed to purchase above assist on the 200-day easy shifting common round $18.75.
The excellent news is that this kind of uninteresting motion tends to resolve itself to the upside. There may be an outdated saying, ‘do not quick a uninteresting market’ and they do not get a lot duller than this one proper now.
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