Market action is mixed but there is a positive bias as we await several big news events. Breadth is solid with around 4200 gainers to 2500 decliners but there are still very few new 12-month highs or lows since the indices are far from either extreme right now.
The action is choppy and weakness due to poor consumer sentiment is being offset by some hope that the China trade deal may be advancing. It is the same idle speculation but it's a convenient excuse while we await Apple's (AAPL) report tonight.
I'm having some good luck with small cap plays such as my Stock of the Week, Qutoutiao (QTT) , which I posted yesterday, and China used car play Uxin Ltd (UXIN) . Zynerba Pharmaceuticals (ZYNE) is a pot play that is getting some attention today and Nio (NIO) is a China electric car manufacturer that is developing well.
In the biotechnology sector, I'm intrigued by Aurinia Pharmaceuticals (AUPH) which has sold off sharply following positive data on a drug for dry eyes. That was a surprise positive but there isn't likely to be an immediate catalyst for its lupus drug until the fall and that is causing the stock to sell off. SharkBiotechnology believes there are two big potential drugs in the next two years and the market is ignoring that in the short term.
It's tough to do much while we await major news events but the action in select small caps is encouraging. Just make sure you are ready to move quickly as conditions shift.
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