The dip buyers couldn't resist a gap-down open caused by trade war worries but the question now is whether they will stick around. Although the indices are off the early lows there is some hesitancy to aggressively chase. While the dip buyers tend to be reflexive they are aware that this easy trade is bound to become more difficult sooner or later.
The most interesting action on my screens right now is the continued strong momentum in recent China IPOs. iQIYI, Inc. (IQ) , Bilibili Inc. (BILI) , HUYA Inc. (HUYA) and last week's Stock of the Week, Sogou Inc. (SOGO) , are all running higher once again. All of these names are technically extended at this point but that doesn't seem to matter much to momentum chasers.
There are some other areas of momentum, too, such as Turtle Beach Corp. (HEAR) and TapImmune, Inc. (TPIV) but the strength is narrowing.
Biotechnology is also offering some momentum as Sarepta Therapeutics, Inc. (SRPT) and Aurinia Pharmaceuticals Inc. (AUPH) show up on the scans.
In the commodity-related sectors W&T Offshore, Inc. (WTI) and Genco Shipping & Trading Ltd. (GNK) are showing life.
The overall market is struggling but there still are these pockets of momentum that are attracting interest. Until that action dies it is going to be difficult to be too bearish.
