We are seeing a little V-shaped bounce action this morning, but many traders are feeling handcuffed as they await the House vote on the repeal and replace of Obamacare. It is likely that the vote won't occur until late tonight, which means we will probably dance around to some rumors as meetings take place in Washington today.
Quite a few folks on both sides of the political spectrum think it's a lousy bill and that its failure shouldn't be a negative, but the issue here isn't this specific bill. The issue is whether the Republicans can work out their differences and pass some other things, like tax and regulatory reform. Donald Trump has always portrayed himself as a deal maker that can hammer out a good solution, and this vote is going to impact that image.
Despite the uncertainty of this vote, the market is showing some positive signs of life. As I discussed in my opening post, it is pretty typical for these bounces to last more than a day or two. There are still plenty of dip buyers that have done quite well buying any and all weakness, and they have little reason to hesitate.
Once again, we have some biotechnology movers like Cara Therapeutics (CARA) , Flexion Therapeutics (FLXN) , HTG Molecular Diagnostics (HTGM) and Cancer Genetics (CGIX) . It is good day trading action, but there isn't much opportunity to build position trades right now.
Breadth is running a very solid 4400 gainers to 1900 losers, but we have less than 100 stocks making new 12-month highs. The dip on Tuesday killed the number of stocks near their highs.
Watch for some headlines at mid-day about the Health Care bill. I suspect the news-driven algorithms are loaded and ready to roll.