19Jan10:42 amEST
Quick Plays to Pass the Time
Despite gaps higher in Nasdaq leading issues like NFLX and TSLA, the major indices are uninspired so far this morning. As I write this, I see the averages all flipping mildly red, as broad-based buying has on indefinite hiatus.
With Inauguration Day tomorrow, the market may very well be transitioning from a phase of pricing in the potential bullish catalysts of a Trump Administration towards reality settling and the near-term good news possibly already priced in--After all, the market is often seen as a discounting mechanism.
Thus, with fairly narrow breadth we want to ferret out a play here or there, as the market permits.
The 3D printing plays, for example, are notorious wild west shootout types of trades, in terms of how fast they can pop and then fade, where the quick survive and the dead (slow) are disposed of usually by high noon.
DDD and SSYS are the main pays garnering attention this morning. But XONE is also heavily-shorted and also is ripe to squeeze over $10.60, especially.
Overall, we have a lethargic-looking tape in front of a new president, headed into a seasonally rough time of year for stocks. If bulls can pull the rabbit out of the hat, yet again, it is hard not to see everyone quickly jumping back into the pool. But, for now, slow is slow and easy does it.