I See Some Strength… But It’s Almost Too Quiet

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The fireworks seem to be over, for now at least. There are still some underlying issues in the market, some uncertainty. A look at median spreads shows they’re some of the widest in years right now, which says liquidity is low and suggests market-makers are cautious. No surprises there.

That said, there are some real bright spots in this tape; technology and semiconductors are showing some strength, and, as I’ve said before, it’s tough to marshall the bulls if tech isn’t leading.

The trillion-dollar question is whether this near-term trend can last. If it can, then the bulls may be able to capitalize and make a run higher.

If not… look for volatility to surge again.

In any case, don’t try to be a hero in this market. Focus on the setups that are working best.

Take precious metals, for instance. They’re exhibiting the cleanest up-trend; the sector sports some of the best-looking individual stocks, too.

There are setups here that work…

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