The equity indices are in the green Wednesday, although the action out there is choppy.
The positive response to China trade negotiation headlines is becoming too routine and is starting to generate more of a "sell the news" response. While there is still optimism about positive progress, the headlines have been non-specific and market players are more skeptical of the quick moves on the news.
The ISM Services number came in weaker than expected and was at its lowest level since August 2017. That caused a little algorithmic selling for a short period.
Breadth is very good with around 4,700 gainers to 2,100 losers. However, the list of names at 12-month highs is only around 220. Semiconductors are leading to the upside and FAANG names are helping.
Some of the picks I mentioned Tuesday are doing well. Zynerba Pharmaceuticals (ZYNE) , Sangamo Therapeutics (SGMO) and Curaleaf Holdings (CURLF) are all up nicely. I have my eye on Amarin Corp. (AMRN) right now and will be looking to put more money to work.
One name on my radar this morning is StoneCo Ltd. (STNE) . This Brazilian payment play had a great run after Warren Buffett disclosed a holding. It issued a secondary offering Wednesday morning at $40.50, which busted pricing very quickly. I'm looking for entry points as develops further. It is at the bottom of the range that formed after good earnings and that needs to hold.
