A positive open received an additional boost on comments by Larry Kudlow that December tariff increases on China could be removed if there continues to be progress in the trade negotiations. Many market participants are skeptical of these optimistic spins but they do generate a reaction.
The buying has not been able to gain additional momentum probably because it is only the algorithms that react to trade headlines like that. There has been selling into the strength but there are signs of support and breadth is very robust with about 5000 gainers to 2000 decliners. New 12-month highs continue to expand and are around 275 this morning.
Apple (AAPL) continues to do much of the heavy lifting as it moves to an all-time high on good volume. However, there continues to be problems with momentum names like Netflix (NFLX) , Coupa Software (COUP) , and other names in related sectors.
A good example of the rotational pressure that continues is the reaction to the initial coverage of the recent Peloton (PTON) IPO. Despite at least a dozen 'buy' or 'accumulate' recommendations the stocks is down over 3% this morning.
I continue to look to put capital to work but it is challenging. My two favorite biotech names Aimmune (AIMT) and Recro Pharma (REPH) continue to act well. My little 5G play Inseego (INSG) is breaking out nicely this morning. Bottom fish play SmileDirectClub (SDC) continues to struggle but I'm giving it some room
I added new buys this morning in AudioCodes (AUDC) and Revolve Group (RVLV) and will be digging for some new stock picks.
The strong small-cap group is keeping me optimistic although the momentum in the broader market is not that strong and the rotational issue continues.
(Apple is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AAPL? Learn more now.)
