8/2/2016
By Charles Payne, CEO & Principal Analyst

I wrote about the earnings and guidance disappointments for Utilities and Staples thus far in this earnings season.  Now that it’s clear those safe havens are overpriced, I suspect there will be a greater sense of urgency to rotate elsewhere. 

Yesterday, it was the NASDAQ composite, which leaped to a 52-week high paced by some big tech names that continue to rebound in Netflix (NFLX), although most of the credit should go to biotechnology. 

IBB

Biotechnology is down 26%  since its high last July, but closed yesterday above key resistance; this rally could pick up steam.  One name I like a lot is Biogen (BIIB), which I think could move up more than 100 points.

IBB

While the market grapples with free-falling crude and new leadership, don’t forget the jobs report looms large on Friday. 

Charles Payne
Wall Street Strategies

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