We have some slow, random and drifting action this morning. As I discussed in my opening post, interest rates are a worry but bonds are fairly steady with the 20+ Year Treasury Bond Fund (TLT) trading up a fraction.
Breadth is around 2 to 1 negative and there are only about 15 new 12-month highs and 50 new 12-month lows. It is sedate action which is what is needed after the big move the last two trading days. The good news is that there continues to be some underlying support. Volatility has slowed and that may help to shore up confidence.
I'm in stock picking mode and haven't done a whole lot today. The big move since the intraday turn on Friday has taken away quite a few 'easy' entries but if we have a little consolidating action here the buyers will start pushing again.
One longer term move I am making is building up a position in gold. At the moment I am mainly using SPDR Gold Trust (GLD) . I like the pullback to support around $124 and the interest rate and inflation talk should provide a tailwind. I'll look to expand into some gold mining as this develops but I have started a core gold position.
The other main sector on my screen is biotechnology. I have found more charts I like in that sector than anything else. There is a little softness in the group today but I'm looking to add to names like Care (CARA) , Sangamo (SGMO) , Sarepta (SRPT) , Iovance (IOVA) , HTG Molecular (HTGM) and a number of others.
There aren't any sectors that are really standing out right now but those two are ones that I am focused on.