In my prior posts I published some studies that show a strong market close on Tuesday may be an indication that the pre-Thanksgiving trading was being front run. That appears to be the case so far this morning as some of the indices are drifting lower on slightly positive breadth.
There isn't any rush for the exits but the pockets of momentum have narrowed, with names like Overstock.com (OSTK) and Square (SQ) taking a rest.
However, traders are still finding opportunities and are chasing Roku (ROKU) , Riot Blockchain (RIOT) , Remark Holdings (MARK) , Gridsum Holding (GSUM) , Social Reality (SRAX) and other small-caps.
I am having some luck today with Nutanix (NTNX) , Trillium Therapeutics (TRIL) and I like some of the setups that are developing on pullbacks. I don't see any reason to believe that downside momentum is going to build.
I'm generally not a value investor but one group that is starting to look interesting is Master Limited Partnerships. Tailgrass Energy Partners (TEP) for example, has had a number of insider buys lately following a good report. The stock continues to trend lower, forcing the yield even higher. There is still minimal support, but the group may be an interesting safe-haven if there are issues with the broader market.
Stay focused on stock-picking and don't be too quick to decide that yesterday's strong momentum is finished. If anything, a pullback here is more of a positive than a negative.
