The market experienced some of the oddest action we've had in a while. It wasn't bad at all but it was quite peculiar. Breadth was just about flat and most of the stocks that have been recent leaders did very little. What led today were financials and old technology names like U.S. Steel (X), AT&T (T), Citigroup (C) and Microsoft (MSFT).
It is better to have buying interest in these stodgy names, but the more important question is whether this is a sign of a healthy market. Seldom do these stocks lead the market for very long. In a good market, there are always names with better growth that will have better relative strength. We might see financials lead for a day or two, but eventually they will lag as the market stumbles or something else starts attracting the momentum money.
There was some speculative action in junk small-caps under the surface -- China Recycling Energy Corp. (CREG), BioFuel Energy (BIOF), Quantum Fuel Systems Technologies Worldwide (QTWW), Aastrom Biosciences (ASTM) and Sinovac Biotech (SVA). That sort of action seems healthier to me than this surge in financials and 1990 technology because it reflects an appetite for higher risk.
Have a good evening I'll see you tomorrow.
March 20, 2014 | 2:34 PM EDT