Building in Biotech, Adding to Twitter

 | Jan 26, 2018 | 1:23 PM EST
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After some slight pauses the last two days the indices have regained some momentum but aren't quite as frothy as they were a week ago. The good earnings report from Intel (INTC) is driving the technology sector and helping the Nasdaq 100 to outperform. Small caps are lagging which is why breadth is fairly sedate with about 3600 gainers to 3100 decliners.

New 12-month highs continue to pile up but we don't have quite as many big percentage gainers today. I'm seeing the higher priced stocks with more relative strength today. Names like VMware (VMW) , Abaxis (ABAX) and Biogen (BIIB) are doing better than some of the smaller cap speculative names.

The challenge of this market is to keep finding new buy entries as more and more stocks become extended. The rotational nature of the action has helped in that regard but if you don't like to buy stocks that are up multiple days in a row it is difficult.

Another difficulty that I'm dealing with today is that I need a rest. This market just doesn't give us much of a chance to reset. In the old days where there was an ebb and flow to the action you would have an occasional break as the action paused but in this market, when it is nearly straight up, you are forced to be active all the time.

Speaking of active, the S&P 500 is hitting a new high on a wave of buyers that are desperately trying to keep pace with the action.

I haven't been that active today but I am building positions in two biotechnology names that are a bit extended here: Sorento Therapeutics (SRNE) and Iovance Biotherapeutics (IOVA) . Another chart I'm watching closely here is RISE Education (REDU) which is basing nicely as it eyes all-time highs.

I have been fooling with Twitter (TWTR) recently and added back some shares I sold on the pop created when Citron issues a favorable view. This is a stock that people want to own because they use and like the product which could help it gain some sustained momentum. I'll be adding further as it develops.

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