Strength in Growth Names Is Giving the Market a More Upbeat Feel

 | Aug 09, 2018 | 2:06 PM EDT
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Stock quotes in this article:

aapl

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htgm

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amrs

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srpt

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sgmo

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gbt

The indices remain close to flat but breadth is the inverse of yesterday with about 4 gainers to every 3 losers. There is better momentum action in the Nasdaq names today and Apple (AAPL) in particular is helping the bullish cause. Broader strength in growth names is what is giving the market a more upbeat feel. It is still rather choppy but the action in individual stocks is a bit more consistent although still sedate due to the summer doldrums.
 
I am not finding many new buys but I am identifying stocks that I feel will offer good opportunities into the next set of quarterly reports which will start in October. We have to deal with the weakest time of the year in the interim so may inclination will be to look to average in on weakness.
 
Yesterday I mentioned two small caps that I think are on the cusp of being discovered. They are HTG Molecular (HTGM) and Amyris (AMRS) .
 
Today I have three biotechnology names that I'm watching for opportunities to add to further.
 
The first is Sarepta Therapeutics (SRPT) which announced earnings today and is trading sharply higher on a very upbeat report. The stock has been drifting lower after significant positive news hit in June and it had a manufacturing issue that pushed it down at the end of July. It looks to be regaining its technical footing and I will be watching for additional entries.
 
The second name I'm watching is Sangamo (SGMO) the stock had earnings today as well as some clinical results that are receiving a positive spin. There has been much chaos in the "gene editing" space and that has unfairly impacted SGMO according to its supporters. The stock has a strong 'cult following' which is a source of criticism among the mainstream biotech community but it has the potential for substantial momentum if it can break the downtrend that started back in March.
 
The third name is Global Blood Therapeutics (GBT) . GBT has potential for accelerated approval of its sickle cell disease in the near term and is developing nicely. This is a potential billon dollar drug in a market, so the upside is substantial.
 
 
 

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