There is no specific news impacting the market this morning but overall action is weak and breadth is poor with about 2600 gainers to 4000 decliners. New 12-month highs have shrunk to around 120 as recent pockets of momentum have slowed.
There are a few names on my screens working such as recent favorites iQIYI (IQ) , known as the Netflix (NFLX) of China, Turtle Beach (HEAR) and CLPS, Inc. (CLPS) .
Biotechnology is particular weak but there is strength in FAANG names and banks that are helping to keep the senior indices close to flat. It is smaller cap names that are the laggards.
I've made a few small sales and the only new buy I've made is Bank of America (BAC) which I discussed earlier. This is not my typical sort of play but the financials do have some momentum and there are some good valuation arguments. With Fed Chairman Jerome Powell coming up tomorrow the group may see some follow through.
Overall I don't like the market action and I do not see much I want to do right now. But it looks like some short term volatility while we await earnings and the Powell testimony. This action may actually help to create some entry points but we'll see how things look later in the day.
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Hong Kong's securities regulator has fined Morgan Stanley, Merrill Lynch, UBS and Standard Chartered for lack of fact checking and due diligence in preparing stock offerings for now-liquidated China Forestry and still-suspended Tianhe Chemicals.
The opposition seems to be trying for another referendum. Meantime, British bank stocks, like Lloyd's, should keep benefiting from anything other than a 'hard' Brexit.
Look for the XLF to run higher with the FOMC now providing clear guidance on rates.
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