Once again, we have quiet, but positive market action. European indices have been trading around flat overnight and, according to Eric Scott Hunsader, S&P 500 futures had the fewest number of trades between 9.30-10 am ET so far this year. Overnight futures trading is setting records for the narrowest range ever.
The indices are close to even, and breadth is running negative. Biotechnology is bouncing back from some weakness and the FAANG names are showing relative strength, but there is very little emotion out there. When there is early selling, it almost always leads to a bounce in the afternoon.
I continue to see quite a bit of speculative action in China names. Some of the bigger caps were moving strongly on Monday, but on Tuesday junk names are attracting interest. Stocks such as Xunlei (XNET) , China Rapid Finance (XRF) and SORL Auto Parts (SORL) are on the radar.
Netflix missed its estimates slightly, used over $400 million in the quarter, and continues to pile up new debt, but it had more subscribers than expected, and that is always the key there. It is much like Amazon (AMZN) in the early days, when the only thing that mattered was growth. It is easy to find financial reasons to question NFLX, but it is the sort of stock that you have to think will work over the long term.
A little more selling is kicking in as I write, and it continues to be difficult to put new cash to work. My technical buy for today was Overstock (OSTK) , which is now seen as a blockchain play. I also reestablished a position in Abeona Therapeutics (ABEO) , which priced a secondary today at $16.
Join Jim Cramer, CNBC's Jon Najarian and Other Experts Oct. 28 in New York
Jim Cramer will host CNBC's Jon Najarian, TD Ameritrade's JJ Kinahan, famed analytics expert Marc Chaikin and other market mavens on Oct. 28 in New York City to share successful strategies for active investors.
You can join them as they discuss how smart investors can make the most of options trading, futures contracts, fundamental and quantitative analysis and great ETFs to buy right now. Participants will also get a chance to meet Jim and other panelists and take photos.
When: Saturday, Oct. 28, 8 a.m.-3 p.m.
Where: The Harvard Club of New York, 35 West 44th St., New York, N.Y.
Cost: $250 per person.
Click here for the full conference agenda or to reserve your seat now.