Market players are still waiting for the health care vote, which isn't likely to occur until after the close today, but the tone of the action has shifted from yesterday. The action is more upbeat and there is less worry that a defeat of the bill will be a market negative.
Breadth is running a robust 4,500 gainers to about 2,000 losers and the Nasdaq is outperforming with a gain of 0.67%. There is good action in big-cap names like Tesla (TSLA) and Amazon (AMZN) . There are pockets of momentum in biotechnology, opticals and names like Shopify (SHOP) and Applied Optoelectronics (AAOI) .
It is broad strength with a good tone, which is quite a shift from the tedious flat action we experienced yesterday. The only real change seems to be that market players are looking beyond the health care issue to the possibility of tax reform. There are obviously some political games being played as some pundits declare that it may not be a bad thing for Trump politically if the Republicans don't take responsibility for dealing with Obamacare. The president also indicated that he wanted to move on to tax reform and that is probably the biggest positive today.
I've added a few things today such as Supernus Pharmaceuticals (SUPN) , which had a target increase and is testing resistance at $30. Another biotechnology name I'm watching is Calithera (CALA) , which priced a secondary at $10.25 a few days ago and is now finding support.
I also added back to Oclaro (OCLR) , which isn't a great chart but the optical sector is hot and it has moved back over the $10 level, which helps.
The market is unconcerned about the political drama right now, but we have to watch for anything that affects the chances of tax reform. That is what the market has been so optimistic about and if obstacles start to appear, it is going to be a problem.