The action started a little slow this morning but market players shook off early jitters and are doing a nice job of building on yesterday's momentum. Headlines that the DOJ was announcing some indictments triggered sell programs, but the indices quickly bounced back when it become clear that it was 12 Russians being indicted for election interference.
Breadth is running solid with about 4,000 gainers to 2,900 decliners and over 200 new 12-month highs.The FAANG names that led yesterday are not as spunky today with Netflix (NFLX) in particular being a drag but there are still some good pockets of momentum. Banks have bounce back some from early selling pressure but don't look to be gaining any momentum. JPMorgan Chase (JPM) is back to fat after a $2 dip.
A couple names I mentioned yesterday are following through nicely. Biotechnology play Zogenix (ZGNX) is hitting all time highs and satellite spectrum play Intelsat (I) is exhibiting good momentum.
I've added a few small plays such as The Rubicon Project (RUBI) , Lonestar Resources (LONE) and, small oil favorite, W&T Offshore (WTI) . One biotech on my radar that I'm waiting for some strong action in is Viking Therapeutics (VKTX) .
Overall the market is in good shape and there should be some stock picking opportunities into the close. However, it is a summer Friday and that may lead to a little volatility into the close.
From a strategic standpoint I believe that there is a greater likelihood of positive trade news rather than negative and I would be wary of carrying any substantial index shorts at this time. Technical conditions are good and the market doesn't want to buy the negative trade war narrative. I'll be looking for more buys this afternoon.
