Bitcoin and Biotech on My Mind as Defiant Bears Get Crushed – RealMoney

Strong momentum in big-cap technology stocks continues Monday morning as Apple (AAPL) continues to fly higher and the Nasdaq 100 (QQQ) hits a a new all-time high.

Breadth is running about four gainers for every three sellers so it is still a narrow market but the strength in the FATMAAN stocks (Facebook (FB) , Apple, Tesla (TSLA) , Microsoft (MSFT) Amazon (AMZN) , Alphabet (GOOGL) , Netflix (NFLX) ) is keeping sentiment very positive and crushing the bears that are fighting it.

Once again there is no real fundamental reason for the strength. It is a combination of liquidity, fear of missing out, and a short squeeze that is driving the action. The same bearish arguments that have been out there for many weeks still apply and are still being ignored.

Small-caps are lagging again but are still in positive territory. My list of 10% movers remains relatively short and there is an odd mix of action with no real dominant theme.

Biotechnology is bouncing back after some recent rough action and precious metals are pulling back due to strength in the dollar.

One new buy I added Monday morning is Xeris Pharmaceuticals (XERS) , which Dan Rosenblum of Shark Biotechnology points out has seen two weeks of good prescription data. The stock has been trading in a tight range after doing a secondary offering and has a good foundation for upside once the story is more widely understood.

I've also added a little Grayscale Bitcoin Trust (GBTC) , which continues to see good technical development. Over the weekend, bitcoin suffered a 10% "flash crash" but that was largely recouped and is not reflected in GBTC, which only trades during regular market hours.

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Bitcoin and Biotech on My Mind as Defiant Bears Get Crushed - RealMoney