Good morning
All it takes is one rotten Apple to ruin the whole bunch of stocks. After another impressive turnaround day in equities the markets were taken by surprise with a significant cut in rev and earnings expectations that sent futures into a tail spin. The culprit appears to be China who is experiencing their own economic growth problems. We are looking at a gap lower for equities and the attention will be focused on big tech. The once beloved FANG stocks look particularly vulnerable. FB APPLE NETFLIX all seem to have specific problems weighing on them. I would not be looking for them to lead the markets out of the current turmoil. We need to see a new group of stocks take over the reins and help lead the charge higher. I do not currently know what group that will be but I am watching all the sectors for some signs to occur. The dollar was getting hit hard last night off the China and Apple news with some unusual activity in the currency world that some are calling a flash crash.
Equities remain guilty till proven innocent as we reenter correction territory. I said yesterday that this market is going to require a ton of patience for the long biased trader and I can not emphasize that enough. Wait for stocks to come to you and when they do don't go all in. Take just a little piece and look for the next area of potential support.
If you are day trading reduce your size and be prepared to be whipsawed around. You may consider widening your stops so that you don't get chopped up.
We have some big M&A in Pharma this morning with BMY buying Celgene for 74 billion dollars. Maybe the biotech and pharma space will be the sector to take the lead for the markets. I think we are going to see more M&A in the packaged food space as well.
$SESN
Sesen Bio Offers Prelim. 12-Month Data From Registration Phase 3 VISTA Trial Of Vicinium For Non-Muscle Invasive Bladder Cancer
$VRCA
Verrica Achieves Positive Topline Results from Two Pivotal Phase 3 Clinical Trials of VP-102 in Patients with Molluscum Contagiosum
$FLDM
Janney Capital Upgrades Fluidigm to Buy
$SMPL
Simply Good Foods Q1 EPS $0.18, Sales $120.9M Miss $122.51M Estimate
$VCYT
UPDATE: Veracyte Reports Will Combine Clinical Study Cohorts Involving 5K+ Patients, Multiple Years Of Clinical Outcome Data
$ALQA
UPDATE: Alliqua Biomedical Says After Satisfying Merger Expenses, Co. Plans To Pay $1-$1.20/Share Special Dividend
