The S&P 500, DJIA and Russell 2000 (IWM) are holding on to the gap-up gains pretty well, but the technology and FAANG names were hit hard as some "sell the news" pressure helped to keep the rotation going that started last week.
Quite a few stocks are off their early highs, but other than the Powershares Nasdaq 100 ETF (QQQ) , most are still in positive territory. Breadth is running 2 to 1 positive, as financials, biotechnology and a variety of groups that have lagged are gaining some fans.
There is some effort to find the winners from the new tax policy -- such as the Master Limited Partnership (MLP) group. Names like Tallgrass Energy Partners LP (TEP) started to bounce last week and are continuing today.
Many traders are struggling to deal with a higher level of volatility than we have seen in a while. It requires a slightly different approach to navigate the market action at this point. We have both rotation and more movement, which requires a more-disciplined trading approach.
My Stock of the Week, Global Blood Therapeutics Inc (GBT) , which I also mentioned last week, is doing well -- as are recent favorites such as Sangamo Therapeutics, Inc (SGMO) and Camping World Holdings, Inc (CWH) . A new buy this morning was Endocyte, Inc (ECYT) , which has a nice base of support.
I'm trying not to be sucked into the market-timing game and am looking mainly at setups in individual stocks. That is complicated, as the DJIA is now grossly overbought, but the rotation out of technology and into new groups is making it a bit easier to contend with.