After the clubbing the market experienced yesterday there is some bounce and support this morning. Anticipation of the big earnings reports tonight from Apple (AAPL) , Amazon (AMZN) , and their cohorts is helping to keep a bid under the market. Also, breadth is running better with around 3200 gainers to 3900 decliners.
The FATMAAN group is leading and there is good strength in China-related names like NIO (NIO) and Li Auto (LI). One group that is not doing well is 'stay at home' plays like Zoom Video (ZM) and Peloton (PTON) . Perhaps that has something to do with news about therapeutics and vaccines for Covid, but it is interesting given the shutdowns in Europe.
My biggest concern right now is the potential for sustained upside movement. We are due for a bounce and the earnings tonight are a good catalyst but then what? The market will likely remain nervous about the election and I would be very surprised to see any heavy buying into Election Day.
The worst-case scenario continues to be unclear results. If there is a definitive winner I expect the market to bounce regardless of who it might be.
I'm trying to identify some keep position I want to rebuild as we move through the election cycle. There are few things at support levels that look appealing like Ocular (OCUL) , Xeris Pharmaceuticals (XERS) , and Inmode (INMD) , but I'm not rushing at this point.