It is peak vacation week on Wall Street and we have a very sleepy market but, unlike yesterday, there is a more negative tone. Breadth is running positive, but he the indices are showing some red as Apple (AAPL) , Amazon (AMZN) and Alphabet (GOOGL) are producing some pressure.
We also don't have as many pockets of momentum. There is talk of a merger in the fertilizer sector that is driving Potash (POT) and Mosaic (MOS) , but not much else in way of themes. With the indices under a bit of pressure and oil reversing to the downside, the profit taking is starting to pick up.
I reduced my Facebook (FB) position a bit, but will jump back in quickly if big-cap names stabilize again. I've cut a few other things, but I'm still looking for setups.
One stock I've discussed before that is developing well as it works off overbought conditions is Aratana Therapeutics (PETX) , which is a biotechnology company focused on veterinary medicine and has a number of drugs coming to the market soon.
Technically, the stock is developing a pennant pattern and I'm looking for a move out of the consolidation.
Another stock on my radar this morning is Gigamon (GIMO) . It is spiking higher on good volume out of a basing pattern. The company's representatives are at a conference today and must be saying something favorable.The action in the indices is poor and the tone of trading is not nearly as upbeat as yesterday. I'll be managing positions closely.