The gap-up open to start the week is holding up well so far. There are no signs of 'sell the news' pressure which has trapped the anticipatory bears and is causing both a short squeeze and fear of missing out. One of the biggest positives right now is that there has not been a high level of euphoria even though the indices have been making new all-time highs. Plenty of folks have been cautiously optimistic and they still have buying power in reserve.
The big challenge now is putting idle capital to work without chasing too much. New 12-month highs have expanded to over 800 and breadth is running a very feisty 5250 gainers to 1750 losers. If you want to put money to work there isn't much choice but to buy strength.
Biotechnology continues to be the leading group. One name in the group that has been lagging but which has some impressive earnings numbers is Coherus BioSciences (CHRS) . It is estimated to earn $1.48 this year and grew that 60% to $2.37 next year. It has been lagging but is showing signs of turning up through the $19 level.
My Stock of the Week is another biotechnology name, Acadia Pharmaceuticals (ACAD) which is bouncing off its 50-day simple moving average.
Putting new cash to work is tough but the technical action is strong and there are no signs that this market is going to reverse at this time.
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