With the Fed rate announcement coming up on Wednesday, it is very easy to overthink what this market is going to do. The bears are still hoping that the announcement will trigger the long-awaited correction, but this morning we still see positive action in anticipation of a dovish central bank. A bounce in oil is also helping a bit, but primarily the buyers are unconcerned about the Fed and still trying to put money to work.
All the talk about terrorism is having no impact on this market at all. It simply doesn't generate a response any longer. If the indices were down, you would see some linkage to the headlines, but this is all about the Fed, right now.
Approval of Sarepta Therapeutics' (SRPT) lead drug caused the whole biotechnology sector to heat up, as there is now an indication that maybe the FDA dynamics are shifting -- and that may lead to faster approvals in other situations. SRPT has been a battleground stock for four years, and the resolution today is helping other stocks in the biotech group.
Some of the key biotech names on my screens include Global Blood Therapeutics (GBT) , Reata Pharmaceuticals (RETA) , Galapagos (GLPG) , Supernus Pharmaceuticals (SUPN) and Minerva Neurosciences (NERV) .
Recent favorites Airgain (AIRG) and TPI Composites (TPIC) continue to trade strongly. AIRG is reporting earnings in the morning and I'm inclined to cut it back a bit before the news. Lantheus (LNTH) continues to bounce higher after pricing a secondary, but I'm not adding too much new inventory, right now.
The market obviously still has bids, but momentum may cool as we await the Fed news. I don't see any reason to be bearish, but I won't be surprised to see some profit taking in individual names that have been a bit overheated lately.