Biotechs Lead Higher
Stocks nudged higher on Monday, lead by a recovery in the biotechs. Trading volume eased a bit, taking some punch out of the move. Leading stocks outperformed slightly, but remain in their holding pattern. This group, of late, has been generally opening strong and then fading as the day goes on. I did notice some mild pickup in these shares late in the day – perhaps a sign of things to come. Aside from biotech moves (ACHN, AGIO, ANIP, etc.), most of the action was contained within consolidation areas (see BDSI, NLNK, CYBR, KANG, etc.). My leaders list model portfolios have only moved up 2% since 10/28/14 – reflecting the soft action in leading names. There is still plenty of time for money to move into the better names. 1999 taught me that regardless of how extended the market its, it can always make another big move higher. In 2007 the market also appeared headed for a correction, when in August money flooded into leading names for a brief 2 month romp (with big returns). I’d like to see more, and better, setups here.
My allocation accounts remain in IWM, which is trying to regain some strength by outperforming today.
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