Ignore Market Jitters, Let Price Action Be the Guide

 | Oct 05, 2016 | 11:11 AM EDT
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There has been some increased nervousness over the last couple of days about the potential for a rate hike. Better-than-expected ISM Services and Factory Order numbers are causing some additional concerns -- and that is driving down bonds and precious metals, again. Equities continue to hold up extremely well, but some market players are concerned about whether good economic news could be a problem, as it increases the chances of a rate hike.

As always, we have to let the price action be our guide -- and so far the S&P 500 is holding above the lows of the day. Breadth is quite good, at around 4,600 gainers to 1,650 decliners. We also have 150 stocks hitting new, 12-month highs, and the high-beta big-caps --
Growth Seeker holding Amazon (AMZN) , Netflix (NFLX) and so on -- are acting well. Biotechnology is also strong, which tells us that speculative interest is running high.

I haven't done much in early going, other than enjoy the momentum in names like Momo (MOMO) , Acacia Communications (ACIA) and Sarepta Theapeutics (SRPT) .

One name I did add today is an old favorite I've mentioned many times in the last couple of years, BioTelemetry (BEAT) . There is news this morning: Anthem Blue Cross Blue Shield now covers mobile cardiac telemetry (MCT), which greatly benefits BEAT. I'll be looking to add to my position as this stock develops further.

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