Today's Theme: Bio Junk

 | Dec 13, 2012 | 11:02 AM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

oncy

,

cgen

,

clsn

,

snta

,

infi

I wrote yesterday that even though the Fed news was being sold, it was too dangerous to short this market. The action this morning is a good example of why this is the case. The market has underlying support as market players fear being left behind if there's a spike on a fiscal-cliff deal. They aren't rushing in to load up, but they are slowly accumulating and are quick to buy weakness. Apple (AAPL), for example, is bouncing back after a slow start.

What is most notable about the action is that there is speculative trading of small-cap "junk" biotechnology names like Oncolytics Biotech (ONCY), Compugen (CGEN) and Telik (TELK). Higher-quality biotechs like Celsion (CLSN), Synta Pharmaceuticals (SNTA) and Infinity Pharmaceuticals (INFI) are benefiting, and you can see that traders are looking for more names in the group.

Other than biotechnology, there are very few themes. A few big-cap names like Facebook (FB), Google (GOOG) and Amazon (AMZN) are active, but if you are looking for quality leadership, you will not find much.

I continue to have difficulty putting cash to work, so I'm mainly trading some of the speculative junk very quickly. I just don't see much that I want to carry, although that is going to be painful if there's a sudden spike higher on a fiscal-cliff deal.

It is irritating that a market meant for very short-term trading is offering so little for those who want to be aggressive, but all we can do is keep on digging.

Columnist Conversations

Not much chatter about gold these days (I always like that!) but it is at clear support and it is my view that...
Lockheed Martin is fading into the close. The stock opened the session with a gap higher open after rep...
It's hard to argue with the price action or the momentum indicators, but volume, as reflected on the graph at ...
Time resistance to the current rally comes in between 4/22-24. Good reason to trail up stops on any longs! ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.