With the market extended due to the bear trap sprung by the Fed, we were ripe for a little profit-taking. Headlines about inverted interest rates, weak German manufacturing data and the ongoing Brexit drama are providing a convenient excuse for some selling.
The selling is across the board with breadth running 1,800 to 4,850 negative but there are still a few things perking up. I'm not seeing signs of panicky selling but obviously some stops are being triggered and aggressive traders are protecting good recent gains.
Gold stocks are one of the groups acting positive today. As I mentioned on Wednesday, I increased my exposure there following the Fed decision that weakens the dollar. My two favorite stocks in the group are Kirkland Lake Gold (KL) and Agnico Eagle Mines (AEM) .
There is also some strength this morning in Twitter (TWTR) on positive analyst comments. Twitter has lagged its FAANG cohorts so it may be ripe for some accumulation by fund managers looking for alternatives.
The pot sector is acting poorly and I'll be looking to buy my favorite play in the group, Pyxus International (PYX) on weakness. One stock bucking the trend today is Curaleaf Holdings (CURLF) , which announced a deal with CVS Health (CVS) Thursday.
A recent Stock of the Week, Recro Pharma (REPH) , is very active in front of an FDA decision that could hit at any time. Speculative traders are bidding it up in hopes of catching a positive decision.
While today's action isn't attractive, it is not too surprising or worrisome in view of the technical conditions and news flow.
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