Hopes for Tax Reform, Less Regulation Lift Indices

 | Feb 03, 2017 | 11:17 AM EST
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The good jobs report this morning is helping the market but like the Fed interest rate decision earlier this week it isn't the main focus of the market right now. The main focus is whether the media narrative of Donald Trump as a disaster is going to impact the market. The bears are anxious to embrace that argument, but more pragmatic market players are focused on policy.

It is expected that repeal and replacement of Obamacare is coming soon and that some solid tax proposals are not far off. Combine that with positive action in banks on regulatory reform, good jobs news and a high level of skepticism about Donald Trump and we have the recipe for further upside.

The indices are not technically extended at this point. They have consolidated the post-election rally very nicely since mid-December and there really isn't any compelling bearish technical argument right now. The arguments are all fundamental and are mostly focused on whom Trump's policies will cause economic chaos.

I'm trying to put some additional money to work, but am staying quite selective with my buying. One chart that came up on my scan is Exelixis (EXEL) , which is working on a breakout move through the $19 level. Another stock I'm watching closely is the recent IPO, REV Group (REVG)  , which manufacturers specialty vehicles.

Some of the active names on traders' radars today include Pulmatrix (PULM) , (which is sold), Naked Brand Group (NAKD) , Esperion Therapeutics (EXPR) , Pixelworks (PXLW) and Cambrex (CBM) . I'll be looking for some quick trades in these names but most of them are well off early highs.

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