Optimism about the health care vote that is scheduled for this afternoon didn't last long. That probably is more a function of overall worries about the market than this bill. The market has not been acting as healthy lately, so when there was an opportunity to sell into a gap-up open, quite a few traders took the opportunity to do so.
Breadth is running poorly again, with about 2,700 gainers to 3,400 decliners. The Nasdaq 100 Powershares QQQ ETF (QQQ) , which was the standout performer, is now the laggard as Tesla (TSLA) and Facebook (FB) take hits following their earnings. The big-cap names that were covering up underlying weakness are no longer doing a very good job.
The market is still focused on the health care vote -- and I expect a positive reaction if it does pass. The thinking is that if they can pass this bill, then there is a very good shot that tax reform can be passed, as well. Of course, there is still the issue of the Senate, but putting together a consensus on the contentious issue of health care is a positive development for a market that is hungry for more fiscal reform.
I am not doing major trading but I do like the look of some of the pullbacks that are developing. I'll be looking for entry points in some things like Cancer Genetics (CGIX) , Sarepta Therapeutics (SRPT) and Ichor Holdings (ICHR) , if they develop further. An old name that I remounted today on a secondary offering is Aratana Therapeutics (PETX) .
I don't usually play earnings when I choose a Stock of the Week, but I did so this time with Health Innovations (HIIQ) . It worked out well, as the stock blasted higher following a strong beat and good guidance. The stock is up 14% since the open on Monday.
The fact that the market is seeing some signs of corrective action has me feeling optimistic about some new opportunities. Real pullbacks are such a rare occurrence it is nice to see the change in the action.