When Participation is Weak During a Market Rise

Although the S&P 500 e-mini index (ES) moved above its open around 9:20 CT, a solid majority of the ES stocks in my basket (five highly weighted issues for each of eight sectors) were trading below their open, as noted in the intraday Twitter comments. That suggested that only a minority of stocks and sectors were contributing to the strength. Fading such moves is often the best short-term strategy, as the lack of participation generally fails to bring fresh buying into the market.
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