Major averages rose yesterday on lower, but above average volume with the Dow Jones Industrials, Philadelphia Semiconductor Index, Russell Mid-Caps, and Russell 2000 all closing at new all-time highs. The number of actionable names remains scant though that, too, could change on a dime as patterns potentially prime themselves via constructive low volume dry-up action, upside reversals, pocket pivots which can then be bought on constructive pullbacks, and any high quality buyable gap ups.
Meanwhile, ugly duckling stocks that have been beaten down such as prior price leaders ACIA and TWLO could have been bought as they formed a floor with low volume days, though this is more a day/swing trading type strategy.
The key is to understand what types of trading works best for your trading personality, then remain as fluid as possible as new profitable opportunities emerge. As we have said before, stocks that once were buyable can often morph into becoming shortable, and stocks that have been horribly beaten down can sometimes form constructive floors which can then be bought at a low level of risk. And such stocks often have big upside as they behave like inflatable balls being held under water that are looking to bounce after the vicious selling has quieted, as noted by volume dry ups and calmer price action.
The odds of a rate hike when the Federal Reserve meets in December now stand at a near certain 90.6% after St. Louis Fed President, and FOMC voter, James Bullard stated that a single rate increase, possibly in December, could move monetary policy into a neutral setting.
Futures are lower by around half a percent at the time of this writing. Tighter monetary policy is generally a short-term negative for stocks, so a correction of sorts ahead of the December meeting would not come as a surprise.