Quality Names Attract More Money

Stocks put in a modest rally Thursday, lead again by biotechs and high quality growth names. Trading volume was light, however, indicating a modest shift – not a mad rush. This is very evident in the intraday action – or lack thereof. This shift into quality names – however slow it may be – is becoming persistent. It isn’t providing me with good buy signals, but the environment alone is welcome. If we can get into this type of environment for a few years, there will be plenty of quality buy signals. Today’s temptation was RCPT, with a strong rally into an earnings call tonight. Taking a position in a biotech right before such an event is the epitome of risk/reward. There are other names that aren’t letting me in (QRVO, MACK, etc.) – but I also view that as a good sign.

My allocation accounts remain in MDY – wishing they were in IBB.

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Quality Names Attract More Money

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