After a slow start the indices are finding their footing. Weakness in oil received most of the blame for the early session weakness, and we are likely to react to inventory numbers this morning. The Fed is in a news blackout prior to next week's meeting so we don't have to deal with any comments for the rest of the week. Instead, market players are focusing on other issues for a change.
Biotechnology and the FANG (Facebook (FB) , Amazon (AMZN) , Netflix (NFLX) and Alphabet (GOOG) ) names are leading. Apple (AAPL) also is giving the indices a good boost once again. The biggest gainers this morning are all biotechnology. Vitae Pharmaceuticals (VTAE) , Sarepta Therapeutics (SRPT) , Global Blood Therapeutics (GBT) and Aerie Pharmaceuticals (AERI) are all making substantial moves.
GBT has been one my favorites, and I added to that position this morning. A few other names I've discussed recently are popping up as well. Gigamon (GIMO) is breaking out of a nice pattern after a bit of shakeout yesterday, Airgain (AIRG) is holding support well, Vonage (VG) is turning up on positive analyst comments and I continue to stalk additional entries into TPI Composites (TPIC) .
Overall, we have the pattern of alternating good and bad days in place. The overall technical condition of the indices remains negative, but this market has a great propensity to bounce back when it looks like we are on the brink of a deeper dive.
The key right now is that we don't see lower lows in the indices. As long as we can hold above the lows we hit on Monday or Tuesday then there is a good chance we can build support and work back up to the substantial overhead at the recent trading ranges.
Right now it is looking like there is fear of being left out of yet another bounce. That is what tends to produce those V-shaped bounces.
