With the exception of the bulk shipping sector, and DryShips (DRYS) in particular, the action is becoming less emotional and we are seeing some more technically driven action. Overbought stocks are cooling and oversold issues are finding support. There isn't major reversal of the recent rotations yet, but the pace of the momentum has slowed and reversed a little in some cases.
As the emotions become less of an issue, we are able to shift to more technically driven stock picking. The great thing about the action since the election is that it provides a good foundation for further strength into the end of the year. It doesn't hurt we have positive sentiment and a honeymoon period before Donald Trump actually takes office.
I'm shifting my style slightly as the reflexive moves generated by the headlines are slowing and it becomes more important to differentiate among individual stocks.
A good example of something I'm looking at is Oclaro (OCLR) . It had a strong report in early November and had several target increases at the time. The optical sector is better and I like the potential for the stock to retest overhead resistance at around $9.
There are other names on my radar that I'm watching, like Tabula Rasa HealthCare (TRHC) and Aratana Therapeutics (PETX) , but they need better technical action to entice me. Tower Semi (TSEM) , which I've discussed several times, had great earnings. I took my gains and will look for a remount there. Also, I continue to like the way Twilio (TWLO) is acting and will add to the position on a strong finish.