We have some sloppy action in the early going as the indices dance around to the dollar and deal with extended technical conditions and rotation action out of some technology names.
Apple (AAPL) is struggling again and chip name Lam Research (LRCX) is seeing a "sell the news" reaction to a strong report. That money is flowing into some financial names such as Goldman Sachs (GS) and Citigroup (C) .
Overall breadth is almost dead-even but I see a noticeable decline in the pockets of momentum in small-cap names. There is still some good trading but it is narrower. I continue to root for some additional weakness as it would take some things back to support and give us more attractive entry points, but the market doesn't much care what I would like.
There are some good opportunities in biotechnology, which has been a great trading group lately. I've aggressively added to a position in Iovance Biotherapeutics (IOVA) , which has very interesting news on solid tumor cell therapy.
Another biotechnology name that I bought today is an IPO, Menlo Therapeutics (MNLO) . www.Sharkbiotech.com believes this is the best IPO out of the various biotechnology names coming public this week.
One non-biotechnology name acting well today is Gridsum Holding (GSUM) , which popped briefly to a new high and continues to develop very well. It is building a solid base in the $12s and I'll be looking to add to it further.
The indices have finally cooled off but the underlying action remains quite good. That is what this market needs if it is going to continue to trend higher.