The S&P 500 is up more than +6% in the last seven trading days. September is definitely bucking the historical norms for now. It would be tempting to consider launching new bullish positions here but the lack of volume worries me. Big rallies on low volume are a warning signal. Maybe this is the "new normal" as investors adjust to the post-flash crash environment. Or maybe investors are just waiting to see how the midterm elections shakeout.
I am not adding any new positions today. I strongly considered promoting HUM from our watch list to an active trade. I also considered adding Visa (V) as a new bearish candidate given the stocks' recent breakdown. However. the short-term market trend is up and I'd rather look to open positions on a correction. We are adding two new candidates to the watch list tonight (BRK.B and SRCL).