Recently there have been two dominant themes in the market. The first is quick, V-shaped bounces after pullbacks. The second is flat action and limited volatility.
It can be very tricky action to navigate, especially for those that are focused on headline news, world events and macroeconomic concerns. The market has not been reacting to those things. Instead, it is staying focused on the price patterns and ignoring the lists of negatives the bears keep broadcasting.
Today we are seeing some of that "flat with a positive tone" action. Breadth is running solid with 3,550 gainers to 2,550 decliners, but new highs have pulled back to around 180. While the FAANG names are doing well with Facebook (FB) , the leading banks are in the red and the pockets of strong momentum are limited.
As I discussed in my opening post this morning I'm staying focused on individual stock-picking rather than big picture concerns. I'm not trying to time this market. There isn't enough volatility to make that worth the effort.
Some of the stocks I'm trading today include Baozun (BZUN) , Sangamo Therapeutics (SGMO) , Allergan (AGN) , Novocure (NVCR) and FormFactor (FORM) .
Of particular interest is The Trade Desk (TTD) , which priced an offering at $52.00. It was well subscribed and priced aggressively. I'm taking advantage of the break below the offering price to slowly build a position. This is a longer-term play for me and I'll be slowly adding as opportunities arise.
Facebook and Allergan is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells FB and AGN? Learn more now.
