A weak earnings report form Intel (INTC) is having no impact on this market as it has gone almost straight up after a gap-up open. Strength is very broad with about 5400 gainers to only 1450 decliners. There actually is some expansion in new 12-month highs as well with 65 on the board. Apple (AAPL) is doing much of the heavy lifting.
There are a number of justifications for the strength. Generally good earnings news, with the exception of Intel, hope that a shutdown deal may emerge, positive comments about progress on China trade and most importantly, an article in the Wall Street Journal which discusses how the Fed may slow the pace of its balance sheet liquidation. Nothing is more powerful than a dovish Fed and that may be what is helping to drive the action.
Regardless of what is moving the markets today, it is a good example of how you have to focus on price action above all else. It may not be easy to fully understand what is driving the action but we can still react to the action in a productive way.
Gold is strong today and I'm looking for momentum in my top gold mining play to continue. Kirkland Lake Gold (KL) has some of the best EPS growth in the sector and is the 'go to' name for momentum players that want exposure to the group.
There are some biotechnology names I'm interested in bottom fishing such as Aimmune Therapeutics (AIMT) and Aurinia Pharmaceuticals (AUPH) , but there is no rush to accumulate. I still have fairly high levels of cash but I'm not feeling the need to chase.