Discretion is the Better Part of Valor
The year's most sluggish premarket puts tradability front and center. The only names moving are high-priced and hard to manage — and when the setup is stacked against you, sometimes the best trade is to sit on your hands.
Proprietary traders sometimes tell each other to "sit on your hands," the object being to prevent themselves from engaging a market or setup that is circumstantially stacked against them. Today's premarket activity is about as sluggish as we've seen at any point this year. The concept of tradability comes heavily into play.
There is some movement in semis and certain computer systems names, but they are exclusively high price point names that are more difficult to manage than stocks that fit our criteria for ideal targets. All other things being equal, a $200 or $300 stock is going to be much more difficult to trade successfully than a $50 or $70 name.
Software is relatively weak, but only insofar as the sector is red this morning and not green. There's no carnage to report there or any major catalyst other than sentiment, and again we have the problem of a lack of tradability of very high price names.
The Kapnotes trading board remains alert for opportunities that arise as the trading day progresses.
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