The Nasdaq is outperforming this morning as market players anticipate some strong earnings news from the technology sector tonight. The other indices are treading water with a slight positive bias. Breadth is running nicely higher, with 3,450 gainers to 2,650 decliners. New 12-month highs are down to around 435, but there are only 25 new 12-month lows.
As I discussed in my opening post, some consolidation is exactly what the market needs here. The "sell the news"' dynamic that some bears were looking for on the tax policy news never developed and now there is some talk that a new vote on repeal and replacement of Obamacare is likely to occur within the next week or so.
Big-picture news doesn't matter much right now as the market is primarily focused on the biggest earnings night of the quarter. Microsoft (MSFT) , Intel (INTC) , Alphabet (GOOGL) , Amazon (AMZN) , KLA-Tencor (KLAC) and several other key names report after the bell. (Google is part of Jim Cramer's Action Alerts PLUS charitable trust and Amazon is part of the Growth Seeker portfolio.) In view of the response to the good earnings reports from some key Dow Jones Industrial Average names on Tuesday, market players are optimistic.
I am digging for some new setups and trying to put more cash to work. One stock I'm watching this morning is Ichor Holdings (ICHR) , which reported strong numbers earlier this week and then priced a secondary last night at $19.50. It broke pricing quickly this morning, but that seems to be something that the computer algorithms have been doing with more frequency lately. I've had some luck buying secondaries that break pricing and, given the numbers, in this case, I'm building this position this morning.
Kornit Digital (KRNT) which has been a favorite for a while continues to trend up very nicely. It has a deal with Amazon that seems to be paying off well. My Stock of the Week, Cancer Genetics (CGIX) , is acting well and I'm looking for that to challenge the $5 area again.
An old name that is showing up on my radar again is Health Insurance Innovations (HIIQ) , which provides short-term medical insurance. It is trying to turn back up over its 50-day simple moving average and may garner some attention if it can put in some higher highs. I'm watching for continued improvement in the price action there.
It is slow going out there, but I see charts developing and that is what matters most.