The Patient is Still Sick

The leading parts of the market, dating back several quarters, are largely under heavy selling pressure again this morning.

Because of this, I am lightening up on my longs inside 12631, as breakout plays are largely suspect amid the ongoing carnage in the biotechnology sector, for example. Small caps are also a huge concern.

On the biotech daily ETF, updated below, note the potential now for a massive head and shoulders top spanning all of 2014, heretofore (light blue lines).

Any way you slice it, biotechs had become too extended longer-term, as we have been arguing for a while now.

I am seeking to finally pounce on some shorts I have been stalking for a while, such as Starbucks, if the weakness persists broadly.

Despite the S&P hitting a new all-time high once again this morning, it is as an unhealthy series of all-time highs as you will likely ever see, given the action in the leaders.

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If you missed the corn move in the wake of the post-crop report volatility earlier in the week, you want to see $34 now hold on this backtest to the breakout level. I suspect of corn is going to plow ahead and make a coffee-like move then we should get another long entry soon.

Which stocks are at the top of your watchlists this morning?

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For you night owls out there, here is the daily chart of Intuitive Surgical, the long-time laggard in recent years despite many medical/biotech plays screaming higher.

What say you about the potential for a major bottom in place? Head-fake? Playing catch-up while biotechs now lag?

What say you about that robot surgeon they have?

Speak your mind, night owls.

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Under Armour is still as impressive as any marquee issue in the tape right now, basing along above all moving averages. It is hard not to like it as a long idea over $120 if we see a strong market.

And Whole Foods Market is a short idea, to play for an ongoing topping process, with weakness off its declining 50-day moving average

Drop me your top tickers overnight.

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With the junior gold miners leading the entire rally in metals and miners today, I took a stab at a starter levered long with Uncle Junior, inside 12631.

I am definitely being aggressive here, as the rally is not yet confirmed and there has been some damage inflicted in the space in recent weeks. Still, the potential for a major bottom since 2013 is still in play.

Stick around for my video market recap after the bell where I will discuss those issues and much, much more.