Drugs and Tech Lead the Nasdaq Higher

Breadth is a tepid 58% and many stocks are sucking wind today. But the big standouts are the drug stocks. It was the only sector that had notable buying interest and it’s following through today.

From my momentum screen in Exodus, the following healthcare names are under buying pressure.

REGN, PACB, TTPH, PTLA, ZIOP, INCY, BIIB, CELG and GILD.

Tech gains are highlighted by CA, ADBE, CSIQ, MOMO, SYNA, VIP and Z.

Both AKS and X are bouncing today too — but those stocks have been ripped to shreds and do not have credibility.

Botton line: Mostly all of yesterday’s losses have been washed away. Maybe Trump trades will start moving again, as noted by today’s move in X. That’s a hard trade to get behind now, however, since none of his plans are being passed by Congress. Healthcare, especially highly profitable drug companies like GILD, CELG and BIIB, have strong fundamentals and could definitely go on a run here.

In the case of GILD, the stock is down 19% over the past year — due to pricing pressures for their drugs. Plus, the made the cardinal sin of curing hep c. They should’ve just made a treatment, in order to keep their customers for longer periods of time. By curing hep c, they’ve relegated themselves at the mercy of attrition and will need to expand into other areas of health. Nevertheless, the stock is cheap.