Buy High & Sell Higher

Good morning. Like yesterday, the bulls don't have a lot of exciting headlines to hang their hats on. The jobs report is out this morning leaving premarket futures in the red as the whisper number was not hit. Meanwhile, Amazon (AMZN) joins a number of high-profile companies by falling short of estimates.

To no one's big surprise, we can also now prove what we've been seeing by just watching the tape - investors continue to send money into the market, but that money is going into selective areas - small caps, technology, and emerging markets. I believe this also confirms a complacent mindset that currently exists out there - that as long as you stay selective and focused on the hot groups, you'll do quite well. While I know that strategy has worked like a charm recently, at some point these hot sectors get too hot for their own good. In fact, if you examine each closely, you'll discover that they are all well into overbought territory and the risk/reward factor in these groups is severely lopsided toward the risk component. But, I suppose I shouldn't stay those things. ;)

Like all week, the China speculative stocks (CESV, CHDX, CAAS, CTDC, BNSO, CHINA, JRJC) are running higher in premarket activity. Given the impressive gains in this group this week, those who are trading have also been focused on just handful of stocks as these gains represent. Buy high and sell higher is the name of the game right now. That's great for as long as it works, but when it doesn't, watch out below.

I'll be back in a few hours with some thoughts and links to share. I'm keeping my fingers crossed for a day without any technology snafus and other time-consuming distractions. Have a fun and profitable Friday!