Looking for any sign that the growth revulsion is over, and I am finding a couple.
First, Amazon (AMZN) looks like it has turned. This one had been going down on a report from Channel Advisor that gross merchandise had been weakening. It was quickly disputed by analysts, but their defenses didn't seem to matter. Today they do.
The failure of Eli Lilly's (LLY) cardiovascular drug test has ignited Regeneron (REGN) and Amgen (AMGN), which had been in horrendous bear markets as part of the overall hatred of high growth. They are catching bids left and right.
Google (GOOGL), which had become a pariah after that last quarter's bump, acts better but I wouldn't bet on it lasting.
Meanwhile, there is no respite whatsoever from the selling in Biogen (BIIB), Valeant (VRX) and Allergan (ACT), the last rapidly becoming one of the most hated stocks in the market. These are breathtaking declines that are testing all holders. We remain convinced for Action Alerts PLUS that, at this time next year, the stock will be up dramatically, but there is no secret that the holders of this stock have to be among the weakest, not unlike those of Valeant. (Biogen and Google are part of TheStreet's Action Alerts PLUS portfolio.)
The high-growth semis are still under pressure. You've got Avago (AVGO) and Skyworks (SWKS) unable to advance. However, NXPI (NXPI) seems to have found its footing, and Bruce Kamich thinks that you buy Xilinx (XLNX) ahead of its Wednesday quarterly report. (Amazon and Skyworks are part of TheStreet's Growth Seeker portfolio.)
I remain convinced that this group won't beat the bear until Allergan advances, and that holds the key.
But before then we will take the measure of things when Netflix (NFLX) reports Wednesday. Did the post-earnings dollar price increase steal the thunder from the quarter? It's entirely possible. I am looking at it as a test case more than anything.
A total "stay tuned" affair.