Once again the action is mixed with breadth running 2 to 3 negative. There are only about 150 new 12-month highs and the pockets of strong momentum remain limited. There aren't any real strong themes, but oil is bouncing again and the FATMAAN names have lost their momentum.
With the end of the quarter occurring and the big Russell index rebalancing last Friday, there has been quite a bit of repositioning that has pushed stocks around without much regard to their individual merits. Some big players are moving into position for the third quarter and the coming earnings season. It can make for tricky trading when the moves have little to do with the fundamentals of the stock.
I'm doing a little repositioning myself as I want to be ready to move aggressively on some of my favorite names as earnings season starts.
One of my top picks, AMMO Inc. (POWW) , put up a very strong earnings report Tuesday night and is testing its all-time highs. I've reduced my position some into strength recently but will be looking for new entries as it develops.
Another name I like is Aurinia Pharmaceuticals (AUPH) . It has pulled back to its 50-day simple moving average and I'm rebuilding my position a bit at this point.
Forte Biosciences (FBRX) , which I discussed Tuesday as a "falling knife" play, looks like it has cleared out a seller. This is probably a good example of how a big fund may reposition into the end of the quarter without much regard to fundamentals. The stock is stabilizing now and I'll be watching for support to hold as I look for additional entries.