Early market strength was sold and the gap-up open in the S&P 500 ETF (SPY) was nearly filled, Still, there continues to be good underlying buying. The DJIA is underperforming due almost solely to IBM's (IBM) reaction to its earnings report, but breadth is running close to two to one positive and the Russell 2000 Index Fund ETF (IWM) is trading up more than 1%.
While the number of stocks hitting new 12-month highs is still suppressed at around 225, there are some better pockets of momentum and that is a positive change.
I've been distracted by some outside matters and haven't been able to be as aggressive with buying as I'd like. However, some names on my radar into earnings season include eHealth (EHTH) , Global Blood Therapeutics (GBT) , Aimmune Therapeutics (AIMT) , Smith Micro Software (SMSI) , Ping Identity Holding (PING) , Recro Pharma (REPH) , Endo International (ENDP) , Inseego (INSG) , Agnico Eagle Mines (AEM) and a number of others.
What is most important right now is that the character of the action not shift back to a macro focus. We are finally seeing better stock-picking and that should not be something that only lasts a day or two. With the backdrop of earnings seasons now in play, the potential for more selective trading is developing well.
Don't be too quick to turn negative if there are some pullbacks. Support is holding and the underlying action is robust.