Last week the market had a few days of chaotic action as rotation kicked in primarily due to concerns that some of the Nasdaq 100 stocks had become too frothy. There were a couple of days of rotation with small caps leading. That action is continuing today, but the good news is that the pressure on big-cap technology stocks is not hurting the broad market. Breadth is very strong with almost 5000 gainers to 2200 decliners. The number of stocks at new 12-month highs is quite low at around 260 but that is a function of rotation into stocks that have been lagging the broad market.
I had the great luck today to being holding Seres Therapeutics (MCRB) which announced positive results for a microbiome therapeutic treatment. The stock is up over 5x on the news. This is a good example of luck in trading. I had no way of knowing what the outcome of this study would be. It was simply good luck. Luck is an essential part of trading and the more stocks you are in the more luck - good and bad - you will have. Not to confuse that sort of thing with skill although it can be helpful to recognize what the risks might be.
I've been having some very good luck with biotechnology names lately. A few that I'm trading are Xeris Pharmaceuticals (XERS) , which is my Stock of the Week. Also, a couple high-risk names that are awaiting news are Fennec Pharmaceuticals (FENC) , and Akers Biosciences (AKER) .
The main thing I'm seeing in this market right now is that aggressive stock picking is working well. The correction in the FATMAAN stocks is not producing correlated selling. In fact, it seems to be leading to very healthy rotation and that is exactly what this market needs.