Strength in biotechnology and big-cap momentum names is helping to create a more positive tone today. The Nasdaq is leading, with a gain of nearly 0.5%, but breadth is running close to even. There are only about 115 new 12-month highs, but the strength in biotechnology for a second day, and some bounce in key names like Apple (AAPL) and Netflix (NFLX) , is sucking in buyers.
Biotechnology is mainly reacting to news that the Trump administration may not be that aggressive with drug pricing regulation. Outside of that, there isn't much news influencing the market. The Congressional election in Georgia last night has helped a little in creating optimism over the Trump fiscal agenda, but the market seems quite positive about the possibilities.
Oil bounced a little and retail is trying, but news that Nike (NKE) may sell directly through Amazon (AMZN) is hurting retailers like Foot Locker (FL) and Dick's Sporting Goods (DKS) . Luckily, biotech and FANG names are offsetting weakness in other places.
I continue to look to put idle capital to work with new buys, but, as I discussed in my opening post, there isn't much of interest. Some of my favorite names, like The Trade Desk (TTD) and Alibaba (BABA) , have been inconsistent -- and it is tough to trust in momentum.
One thinly traded small-cap that is on my radar is Yatra Online (YTRA) . It is an India-based provider of airline tickets, hotel bookings and other travel services. It is forming a flag formation on good volume.