The S&P 500 is now up for the seventh day in a row as the V-shaped bounce off the 200-day simple moving average continues. Breadth is running at a frisky 4400 gainers and 2100 decliners but the number of 12-month highs is still sedate with around 230.
FAANG names are acting well and the technology group in general is enjoying a bounce off Trump's support of China technology giant ZTE (ZTCOY) .
Trump is also having a positive impact on the biotechnology sector as fears of price controls have evaporated. As I discussed on Friday I'm focusing my trading efforts in that group.
Arena Pharmaceuticals (ARNA) is my Stock of the Week. It is busting out of a cup-and-handle pattern to its highest levels since 2015. Global Blood (GBT) continues to run into data that is scheduled to be released tomorrow morning.
Aurinia Pharmaceutical (AUPH) was my top technical pick for the day and it's taking out resistance at highs from earlier this year and is gaining momentum now. Sangamo (SGMO) is coming off its lows and I'd like to be aggressive on peanut allergy play Aimmune (AIMT) if it can recover its 200-day simple moving average around $31.
In addition to biotechnology, I like the way 58.com (WUBA) and Baozun (BZUN) are acting in the China sector.
Other names on the radar are Health Insurance Innovations (HIIQ) and ETFMG Alternative Harvest ETF (MJ) , and both are attracting interest today and taking out some resistance. MJ remains my top ETF for 2018.
There is good trading but there is no question that we are becoming extended and ripe for some profit taking. Don't' be afraid to take some partial profits when you have them.
