Dip buyers went to work quickly this morning and have already reversed the Nasdaq into positive territory. Traders are loading up on FAANG names again which are all green. Small caps are lagging badly which is producing about 2 to 5 negative breadth but speculative trades are very busy and finding pockets of momentum again.
Some of the strongest names on my radar today are Schrodinger (SDGR) , Datadog (DDOG) , and Co-Diagnostics (CODX) . The biotechnology names tend to be standouts. The iShares Nasdaq Biotechnology Index ETF (IBB) is breaking out to a new all time high this morning.
As I discussed this morning, we have a simultaneous bull and bear market. Groups like biotechnology, cloud computing, and FAANG names are acting like a classic bull market while groups like financials and consumer durables are acting like a bear market. If you try to pigeon hole the overall market as bullish or bearish you are not seeing the big picture.
I'm a seller of some of my positions in the biotech sector into strength this morning while at the same time I continue to search for new technical buys. My Stock of the Week is medical device manufacturer Zynex (ZYXI) .
The underlying strength in areas of the market is quite impressive but the big picture is quite mixed. It is best to not be dogmatically bullish or bearish.