The Nasdaq is outperforming to the upside this morning with a gain of 1.4%, largely due to Netflix (NFLX) and the positive sympathy created by its strong earnings report. When the FATMAAN names have relative strength - like they do this morning - there tends to be some rotation out of the smaller stocks that have been favored lately. The Russell 2000 ETF (IWM) is lagging a little with a gain of around 1%, but what is more notable is that the pockets of strong momentum are not quite as hot. My list of stocks that are up 10% or more is a little shorter, and there is only one stock with the intraday double today.
The bears will complain about this market being extended and untethered from reality, but the technical action is very good, and we are seeing a little bit of consolidation as the rotation takes place. The folks that are waiting for the market collapse are going to have to keep waiting.
I'm active trading individual stocks, in the same manner I have been employing for a while. I will make some partial sales into strength while I continue to look for some new setups and opportunities. The strategy is to try to stay with strong momentum as much as possible, and the best way to do that is to reduce into strength and try to ride a portion of the position, although it may be technically extended.
One name on my radar is Lithium Americas (LAC) , which did a secondary offering following a big move yesterday. The offering is priced at $22, and I'm slowly building a position with that as the key support level.
Another name I've held for a while that is breaking out out today is Synchronoss Technologies (SNCR) , which is involved in 'personal cloud' and 'Rich Communication Services (RCS).' The company is in turnaround mode after naming a new CEO and looks to be showing up on the screens with the strong price action.
Aurinia Pharmaceuticals (AUPH) is expecting FDA news any time now, and I'm watching that closely.
The S&P 500 is hitting new intraday highs, breadth is running around 2 to 1 positive, and there are over 800 new 12-month highs. This positive trend remains strong and is a good friend of the bulls right now.